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A company is considering an investment that will cost $898,000 and have a useful life of 4 years. The cash flows from the project are
A company is considering an investment that will cost $898,000 and have a useful life of 4 years. The cash flows from the project are expected to be $532,000 per year in the first two years then $169,000 per year for the last 2 years. If the appropriate discount rate is 13.9 percent per annum, what is the NPV of this investment (to the nearest dollar)?
a. $193937
b. $1989937
c. $224725
d. $257796
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