ABS Ltd starts a new project that has a initial investment of $1,000,000, The estimated life of the project is 5 years. The market rate of return is 9%.

Year Annual Profits

1 $100,000

2 $200,000

3 $360,000

4 $480,000

5 $510,000

What is the present value of the 5 cash inflows of this project?

Options: 1. $1,200,000 2. -$1,200,000 -3. $1,000,000 4. $1,000,000