The Neils Corp. is considering making an investment in a project of $10,000,000. It expects to receive six payments of $2,500,000 each. Its discount rate is 6%. A table shows that the present value of an annuity of six payments of $1 each, at 6%, has a value of 4.91732. The net present value of this investment opportunity is approximately

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The net present value (NPV) is calculated by subtracting the initial investment from the present value of the cash inflows. The present value of the cash inflows is found by multiplying the annuity factor (4.91732) by the annual cash inflow ($2,500,000), which equals $12,293,300. Subtracting the initial investment ($10,000,000) from this amount gives an NPV of approximately $2,293,300.