20. Husky Inc. is considering a capital expansion project. The initial investment of undertaking this project is $214,500. This expansion project will last for five years. The net operating cash flows from the expansion project at the end of year 1, 2, 3, 4 and 5 are estimated to be $50,850, $69,783, $71,332, $81,236 and $107,750 respectively. Husky has a capital structure consisting of 60% debt and 40% equity. The after-tax cost of debt is 15% and the cost of equity is 37.50%. Based on Huskys weighted average cost of capital calculated, what is the NPV of undertaking this expansion project? That is, what is the NPV if the weighted average cost of capital is used as the discount rate? Shall Husky undertake the investment project? (Points : 3.7)

A. NPV=$11,124.28. Husky shall undertake the investment project since NPV>0. B. NPV=-$19,579.80. Husky shall not undertake the investment project since NPV<0. C. NPV=-$10,114.80. Husky shall not undertake the investment project since NPV<0. D. NPV=$23,062.83. Husky shall undertake the investment project since NPV>0.