You're considering starting a software company with an initial $($t$=0)$ cost of $$404.$

The first positive cash flow will be $$60$ in one year $($t$=1),$ and will grow by $6\%$ pa for $3$ years. So the next cash flows will be:

$$60$ at t$=1$;

$$63\mathrm{.}6(=60*(1+0\mathrm{.}06)^1)$ at t$=2$;

$$67\mathrm{.}416(=60*(1+0\mathrm{.}06)^2)$ at t$=3.$

From t$=3$ onwards, these positive cash flows will grow at the lower rate $-1\%$ pa $($note the negative sign$)$ in perpetuity. So the subsequent cash fows will be:

$$66\mathrm{.}7418(=60*(1+0\mathrm{.}06)^2*(1-0\mathrm{.}01)^1)$ at t$=4$;

$$66\mathrm{.}0744(=60*(1+0\mathrm{.}06)^2*(1-0\mathrm{.}01)^2)$ at t$=5$;

$$65\mathrm{.}4137(=60*(1+0\mathrm{.}06)^2*(1-0\mathrm{.}01)^3)$ at t$=6,$ and so on forever.

The required return is $10\%$ pa$.$ What is the net present value $($NPV$)$ of starting this company? All results above and below are rounded to $4$ decimal points. The NPV of starting this company is:

Question $9$ Select one:

a$.$

$$618\mathrm{.}2184$

b$.$

$$536\mathrm{.}8968$

c$.$

$$344\mathrm{.}3445$

d$.$

$$209\mathrm{.}6138$

e$.$

$$157\mathrm{.}7581$