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A company is considering an investment that will cost $761,000 and have a useful life of 7 years. The cash flows from the project are
A company is considering an investment that will cost $761,000 and have a useful life of 7 years. The cash flows from the project are expected to be $569,000 per year in the first two years then $174,000 per year for the last 5 years. If the appropriate discount rate is 14.2 percent per annum, what is the NPV of this investment (to the nearest dollar)? a. $629388
b. $2151388
c. $634661
d. $768039
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