TB MC Qu$.5-36$ Story Company is investing in a$...$

Story Company is investing in a giant crane. It is expected to cost $$6\mathrm{.}5$ million in initial investment, and it is expected to generate an end$-$of$-$year after$-$tax cash flow of $$3\mathrm{.}5$

million each year for three years. Calculate the NPV at $12$ percent.

Multiple Choice

$$3\mathrm{.}81$ million

$$1\mathrm{.}91$ million

$$1\mathrm{.}50$ million

$$0\mathrm{.}90$ million