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Following details are provided by VPN Company. Initial investment $5,000,000 Discount rate 15% Yearly cash flows 1 $1,250,000 2 $1,350,000 3 $2,400,000 4 $1,150,000 Refer

Following details are provided by VPN Company.

Initial investment

$5,000,000

Discount rate

15%

Yearly cash flows

1

$1,250,000

2

$1,350,000

3

$2,400,000

4

$1,150,000

Refer to the following table for PV factors:

13%

14%

15%

1

0.885

0.877

0.87

2

0.783

0.769

0.756

3

0.693

0.675

0.658

4

0.613

0.592

0.572

What is the NPV of the project?

A. $590,850 negative

B. $590,000 positive

C. $615,455 positive

D. $654,900 negative

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