A project costs $500,000 and produces the following 2-year cash flow.:

Year Cash Flow

1 -$50,000

2 $620,000

If the firm has a cost of funding = 7%, what is the NPV of the project? (note that both cash flows and rates are quoted on an annual basis)

		$8,6227.36
		-$3,355.83
		-$3,881.72
		$-5,196.96