A firm has undertaken a feasibility study to evaluate a project that has the following estimated cashflows:

Increased sales to business of $140,000 for the next 5 years (starting in one year's time) Increased costs of $20,000 for the next two years (starting in one year's time) The initial capital expenditure required is $100,000. The study cost $10,000 to conduct.

-Amount borrowed to fund project is $200,000 with interest of 8% pa paid yearly. If the firm is facing a discount rate of 10%, what is the NPV of this project?

a. 506,155 b. 395,999 c. 455,420 d. 516,155