The Jerome Inc. western regional branch has been looking toinstall a new distrib

The Jerome Inc. western regional branch has been looking toinstall a new distribution center. The analysts have run thenumbers on the distribution center costs and annual inflow from theinvestment. The project will cost $5 million at the beginning ofthe first year. The project will generate $1 million in earningsbefore interest and taxes at the end of each year. Jerome is in the35% tax bracket and annual depreciation equates to $500000 peryear. The distribution centers end of the fifth years salvageequals its book value or $2500000. Compute the projects NPVassuming Jeromes WACC equals 12%.A. -$1238328B. $564060C. $1825731D. -$66776