BC Co. wants to invest $10.5 million up-front in a project that will generate cash flows of $3.8 million per year for 5 years starting in a year. In year 6 the company will incur a shut-down cost of $1.0 million. If the cost of capital is 13.30%, what is the NPV of the project?

a.

$8,027,262

b.

$7,500,000

c.

$1,768,223

d.

$3,240,961

e.

$2,295,485