The executives of Garner-Wagner Inc. are considering a project that has an up-front cost of $3 million and is expected to produce a cash flow of $500,000 at the end of each of the next 5 years. The project's cost of capital is 10%.
Refer to Exhibit 14.3. Based on the above data, what is the project's net present value?
A) -$1,312,456
B) -$1,104,607
C) -$875,203
D) $105,999
E) $321,788