Vociferous Company Is Considering the Purchase of Production Equipment That

Vociferous Company is considering the purchase of production equipment that costs $800,000. The equipment is expected to generate an annual cash flow of $250,000 and have a useful life of five years with no salvage value. The firm's cost of capital is 12 percent. The straight-line method with no mid-year convention is used. Ignoring income taxes, the net present value of the project is

A) $80,960.
B) $97,250.
C) $108,900.
D) $101,250.