An Investor Is Considering a Project That Will Generate $800,000

Multiple Choice

An investor is considering a project that will generate $800,000 per year for four years.In addition to upfront costs,at the completion of the project at the end of the fifth year there will be shut-down costs of $500,000.If the cost of capital is 5%,based on the NPV,at what upfront costs does this project cease to be worthwhile?

A) $2.32 million
B) $2.44 million
C) $2.58 million
D) $2.84 million
E) $2.96 million