Jamesson Systems is considering a project that has WACC = 12.50% and requires an initial investment of $1000. The project is expected to produce the following cash flows in the future:

Year 1: $500

Year 2: $200

Year 3: $500

What is the project's NPV? (round your answer to the nearest cent)

Please, do not use dollar sign $ in your answer. Moodle does not like it.

Answer:

Question 2

Not yet answered

Marked out of 1.00

Flag question

Question text

Jamesson Systems is considering a project that has WACC = 12.50% and requires an initial investment of $1000. The project is expected to produce the following cash flows in the future:

Year 1: $500

Year 2: $200

Year 3: $500

Based on your calculations above, should Jamesson Systems accept or reject this project?

Select one:

a. accept

b. reject