Mega Dynamics is considering a project that has the following cash flows:

Year Project Cash Flow

YEAR	PROJECTED CASH FLOW
0	?
1	2000
2	3000
3	3000
4	1500

The project has a payback of 2.5 years. The firm's cost of capital is 12 percent. What is the project's net present value (NPV)? A) $765.91 B) $1,049.80

C) $2,761.32 D) $577.68 E) $3,765.91