Question text

ABC Company is considering a new investment proposal. You are given the following data:

Initial investment

$2,020,000

Discount rate

12%

cash inflows (Yearly)

1

$786,000

2

$678,000

3

$678,000

4

$678,000

5

$786,000

What is the Net Present Value (NPV) of the new investment?

Select one:

a. $959,500

b. $1,015,050

c. $252,500

d. $581,870