A capital budgeting project is expected to have the following cash flows:

Year Cash Flows

0 -$850,000

1 $300,000

2 $400,000

3 $500,000

What is the project's net present value at an 18% required rate of return?

a.

-$18,725.33

b.

$10,800.96

c.

-$4,173.50

d.

$350,000