Could you please explain how to do this question. the answer is C.
The following information relates to a two-year project. Initial investment $1 million Cash inflow Year 1 $750,000 Cash inflow Year 2 $500,000 Cost of capital Year 1 10% Cost of capital Year 2 15% What is the net present value of the project (to the nearest $500)? A ($12,000) B ($55,000) C $77,000 D $116,500