Canopus Inc. is considering a project with an initial cost of $1 million. The project will not produce any cash flows for the first two years. Starting in year 3, the project will produce cash inflows of $700,000 a year for five years. This project is risky, so the firm has assigned it a discount rate of 25 percent. What is the net present value? Group of answer choices

$406,141.27

$104,482.91

$204,797.44

$331,185.79