Texas Utensils is considering a new project, which would cost $$350,000$ initially and would generate a revenue of $$42,000$ next year. The revenue would grow at $3\%$ per year forever. If the cost of capital is $8\%,$ what is the NPV of this new project?

$$ $$840,000$

The NPV is an infinite # since the cash flow will grow into an infinitely large quantity.

$$490,000$

$$175,000$