0. Doodabble Company is considering the purchase of production equipment that costs $960000. The equipment is expected to generate an annual cash flow of $280000 and have a useful life of 7 years with no salvage value. The firm's cost of capital is 11 percent. The straight-line method with no mid-year convention is used.

1. 40 Ignoring income taxes, the net present value of the project is

   1. A $359,400

   2. B $1,000,000

   3. C ($212,200)

   4. D $212,200