Question: ABS Ltd starts a new project that has a initial investment of $1,000,000, The estimated life of the project is 5 years. The market rate

ABS Ltd starts a new project that has a initial investment of $1,000,000, The estimated life of the project is 5 years. The market rate of return is 9%.

Year Annual Profits

1 $100,000

2 $200,000

3 $360,000

4 $480,000

5 $510,000

What is the NPV of this project?

Options:

$190,000

$150,000

-$150,000

-$190,000

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