Question: 2 points Saved Berkeley Studios, which currently sells art products, is considering project Q. which would involve teaching art lessons. For most of its existence,
2 points Saved Berkeley Studios, which currently sells art products, is considering project Q. which would involve teaching art lessons. For most of its existence, Berkeley Studios sold art products, taught art lessons, and painted murals. Project would require an initial investment of 587,300 today and is expected to produce annual cash flows of $10,200 each year forever with the first annual cash flow expected in 1 year. What is the NPV of project based on the information in this paragraph and the following table and applying the pure play approach to determining a project's cost of capital? Firm Berkeley Studios Frisco Frescos NorCal Art Art Factory Line of business Sells art products Paints murals at residential and commercial sights Teaches art lessons Sells art products, teaches art lessons & paints murals WACC 7.7 percent 4.4 percent 8.2 percent 9.5 percent a $37.090 (plus or minus 510) b. 5144518 plus or minus 510) C 545.168 (plus or minus 510) d. 520.058 plus or minus 510) 30 sonho O 7.00 PM do (hp
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