1. Suppose Palmer Properties is considering investing $10 million today (i.e., C₀ = -10,000,000) on a new project that is expected to last for 10 years. The project is expected to generate annual cash flows of C₁ = -700,000; C₂ = 1,500,000, C₃ = 2,000,000 and then $2,500,000 for period C₄ through C_10. If the discount rate is 9% and managements payback period cutoff is 6 years:

(b) What is the net present value of the project ? Show your work