You are evaluating purchasing the rights to a project that will generate after tax expected cash flows of $90,000 at the end of each of the next five years, plus an additional $1,000,000 at the end of the fifth year as the final cash flow.You can purchase this project for $950,000. If your firm's cost of capital (aka required rate of return) is 15%, what is the NPV of this project?
a. 500,000
b. 950,000
c. 106,000
d. 151,000
e. insufficient information to estimate an NPV