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Purchase in Year 0............... $ -2,750,000 Year 1................... 180,000 Year 2.................... 276,000 Year 3.................... 220,000 Year 4..................... 239,000 Year 5 ..................... 250,000, and a sale

Purchase in Year 0............... $ -2,750,000 Year 1................... 180,000 Year 2.................... 276,000 Year 3.................... 220,000 Year 4..................... 239,000 Year 5 ..................... 250,000, and a sale @ $3,190,000 takes place EOY 5

Using the companys hurdle rate (discount rate) for leveraged projects of 9.00%, what is the leveraged NPV of the project?

a. $ 577,943 b. $ 893,210 c. $ 591,450 d. $ 953,378

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