Red Lake Mines, Inc

Red Lake Mines, Inc. is considering adoption of a new project requiring a net investment of $10 million. The project is expected to generate 5 years of net cash inflows of $5 million per year. In the project's sixth, and final year, it is expected to have a net cash outflow of $1 million. What is the project's net present value, using a discount rate of 12 percent?

A) about $8.52 million
B) about $8.00 million
C) about $7.52 million
D) none of the above