Following details are provided by Dopler Company.
| Initial investment |
$2,000,000 |
| Discount rate |
12% |
| Yearly cash flows |
| 1 |
$200,000 |
| 2 |
$400,000 |
| 3 |
$400,000 |
| 4 |
$400,000 |
| 5 |
$200,000 |
Refer to the following table for PV factors:
| 10% |
11% |
12% |
13% |
| 1 |
0.909 |
0.901 |
0.893 |
0.885 |
| 2 |
0.826 |
0.812 |
0.797 |
0.783 |
| 3 |
0.751 |
0.731 |
0.712 |
0.693 |
| 4 |
0.683 |
0.659 |
0.636 |
0.613 |
| 5 |
0.621 |
0.593 |
0.567 |
0.543
|
Calculate the NPV of the project.
A. $250,000 positive
B. $1,005,000 positive
C. $950,000 negative
D. $850,000 negative