Claire Deininger, CAIA has purchased an apartment complex and is calculating the investment value (IV) of the project. Assume that U.S. Treasury notes are yielding 1%, the liquidity premium is 1.5% per year, and the required risk premium for this particular real estate project is 3.25% per year. Below are the Deiningers financial estimates for the apartment complex. The net sales proceeds in year 4 are estimated at $650,000.

	Year 1	Year 2	Year 3	Year 4
Potential gross Income	150,000	155,000	160,000	165,000
Vacancy loss	-10,000	-10,000	-10,000	-10,000
Effective gross income	140,000	145,000	150,000	155,000
Operating expenses	-55,000	-60,000	-65,000	-70,000
Net operating income	85,000	85,000	85,000	85,000

What is the NPV of the project?

A. $655,813

B. $728,597

C. $779,597

D. $815,975

Please provide step by step explanation!