Question: Quiet Quilts is considering adding another division that requires a cash outlay of $29,500 and is expected to generate $6,250 in after-tax operating cash flows

Quiet Quilts is considering adding another division that requires a cash outlay of $29,500 and is expected to generate $6,250 in after-tax operating cash flows each year for seven years. The CFO has determined the new division's beta coefficient is 0.8. The market return is expected to be 11 percent and the risk-free rate of return is 4 percent. What is the NPV of adding the new division?

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