The freezers in your companys warehouse are getting old and only have two years of useful life left. As they are inefficient they generate net cash flow for the firm of only $50,000 per year. New freezers cost $500,000, but they will generate net cash flow for the firm of $150,000 per year for five years, at which point they will no longer work and will have no value. If the appropriate risk adjusted discount rate is 8% what is the net present value of the project?

a. $250,000

b. $29,948

c. $98,907

d. ($29,948)