What is the NPV of the Riverview's project if the total cash flow after tax is -$16,752?

To assess the NPV (Net Present Value) of a project, it is essential to understand that NPV is calculated by taking the present value of expected future cash flows generated by the project and subtracting the initial investment.

In this context, if the total cash flow after tax is -$16,752, it means that the cash flows from the project are resulting in a loss rather than a gain. A negative cash flow indicates that the total amount of cash the project is generating does not meet the required return or the costs associated with the investment.

Consequently, a negative cash flow leads to a lower NPV, since the NPV formula inherently subtracts these cash flows from the expected benefits of the project. To be viewed as a viable investment, a project's NPV should typically be positive (indicating that it is expected to generate more profit than costs).

Thus, a total cash flow after tax of -$16,752 clearly leads to a negative NPV, reflecting that the project is not financially favorable. Therefore, the correct assessment of the situation shows that the project results in a negative NPV, confirming the answer.