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A company is considering a new project they consider to be a riskier than their current operations. Thus, management has decided to add 5 percent

A company is considering a new project they consider to be a riskier than their current operations. Thus, management has decided to add 5 percent to their company's overall cost of capital, WACC, when evaluating this project. The project requires an investment of $40,000 right away and projected cash inflows of $45,000 at the end of the first year. The company's overall WACC is 8 percent. What is the projected net present value of the new project to the nearest dollar? (Hint: You need to find the project's WACC and discount the cash flow by the project WACC.)
a. $176.99
(b.) $841.12
c. $208.40
d.-$592.61
e. $1,666.67
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