A project requires an investment of $$930$ today. It can generate sales of $$1,160$ per year forever. Costs are $$635$ for the first year and will increase by $20$ percent per year. $($Assume all sales and costs occur at year$-$end $[$i$.$e$.,$ costs are $$635$@$t=1.)$ The project can be terminated at any time without cost. Ignore taxes and calculate the NPV of the project at a $12$ percent discount rate.

Multiple Choice

$$70\mathrm{.}71$

It cannot be calculated as $g>r.$

$$78\mathrm{.}20$

$$113\mathrm{.}20$