A new production line costs $800,000. You believe that, commencing in exactly one year, the new production line will produce cash inflows (net of all operating costs) of $170,000 a year for 10 years. The production line is then expected to be of no value. If the appropriate discount rate is 14% per annum, what is the NPV of the production line (to the closest dollar)?

Select one:

a. $583,624

b. $86,740

c. $886,740

d. $900,624