Jazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV?

Jazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC:

9.75%

    Year

0  

1 

2 

3 

4 

Cash flows

-$1,200

$400

$425

$450

$475

a.0$157.34

b.0$185.11

c.0$222.13

d.0$174.00

e.0$198.07