Net Present Value: Johnson Entertainment Systems Is Setting Up to Manufacture

Net present value: Johnson Entertainment Systems is setting up to manufacture a new line of video game consoles. The cost of the manufacturing equipment is $1,750,000. Expected cash flows over the next four years are $725,000, $850,000, $1,200,000, and $1,500,000. Given the company's required rate of return of 15 percent, what is the NPV of this project?

A) $1,169,806
B) $2,919,806
C) $4,669,806
D) $3,122, 607