ABC Co. wants to invest $11.3 million up-front in a project that will generate cash flows of $3.4 million per year for 5 years starting in a year. In year 6 the company will incur a shut-down cost of $1.6 million. If the cost of capital is 13.60%, what is the NPV of the project?

a.

$4,100,000

b.

-$1,114,427

c.

$4,955,525

d.

-$258,902

e.

$1,230,047