Suppose Cold Goose Metal Works Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,500,000. The project is expected to generate the following net cash flows:

Year Cash Flow

Year 1 $350,000

Year 2 $475,000

Year 3 $475,000

Year 4 $475,000

Cold Goose Metal Works Inc.s weighted average cost of capital is 8%, and project Beta has the same risk as the firms average project. Based on the cash flows, what is project Betas NPV?

-$1,042,480

$1,457,520

-$1,198,852

-$692,480