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27) Quik Trip (a chain of convenience stores) is considering expanding into the Hammond market. It has the opportunity to open one store. Quik Trip

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27) Quik Trip (a chain of convenience stores) is considering expanding into the Hammond market. It has the opportunity to open one store. Quik Trip has one bond outstanding which has a current price of $1,038.46. (In other words, Quik Trip raised money, 1,038.46, by selling the bond.) The bond has a maturity of 1 year from today. The coupon rate on the bond is 8%. The coupon payment is paid at the end of the year. The bond has a par of $1,000 Assume that the Quik Trip bond and the store in Hammond have the exact same level of risk (even though they have different lives). Based on research, the management of Quik Trip expects the following cash flows (in dollars) 1 X2 today r 3 -50 10 50 40 What is the NPV of this project? Please show work

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