Third State Bank Wants to Add a New Branch Office

Multiple Choice

Third State Bank wants to add a new branch office.It has determined that the cost of construction of the new facility will be $1.5 million with another $500,000 in organizational costs.The bank has estimated that it will generate $319,522 per year in net revenues for 20 years.If Third State requires a 17% return on its money,what is this project's net present value?

A) $201,805
B) -$201,805
C) $1,798,195
D) -$1,798,195
E) $298,195