Ernestine is analyzing a 4-year project with an initial cost of $87,000, a required rate of return of 14 percent, and a chance of success of 4 percent. If the project succeeds, the annual cash flow will be $1,789,000. If the project fails, the annual cash flow will be $131,000. The project can be shut down after the first 2 years but all monies invested will be lost. None of the initial cost can be recouped after 4 years. What is the net present value of this project at Time 0?

• $150,050.32

• $59,412.95

• $85,578.77

• $49,666.71

• $238,212.04