Your firm is half-way through a six year project with the following forecast and actual cash flows:

Original Forecast Cash Flows

CF1 = 3.40 million

CF2 = 2.90 million

CF3 = 3.10 million

CF4 = 2.95 million

CF5 = 3.25 million

CF6 = 3.00 million

Actual Cash Flows to Date

CF1 = 3.20 million

CF2 = 2.75 million

CF3 = 3.00 million

The original forecasted project investment was $10 million, but the actual investment was $12 million. The original project hurdle rate was 10.50% and the current hurdle rate is 11.50%. What is the revised net present value of this project? Please show calculations.

a) 351,404

b) 559,254

c) 709,143

d) None of the above