A manufacturer of computer chip develops a new chip over two years. This costs $900,000 immediately and a second amount of $900,000 at the end of Year 2. When the chip is released, it is expected to make $1.3 million per year for three years after that (i.e. from Year 3 to Year 5). What is the net present value of this decision if the cost of capital is 11%?

Question 21 options:

	$1,389,290.81
	$1,290,587.16
	$1,616,299.50
	$947,925.60
	$1,091,278.72