A company is considering an investment project X. The project is expected to change 

the company's free cash flow over the next 6 years from: 

0	1	2	3	4	5	6
200	200	300	300	250	250	300

(Cash Flows of the company without project X)

 

TO: 

0	1	2	3	4	5	6
-50	220	350	400	400	400	400

(Cash Flows of the company with project X)

 

A. Calculate the Net Present Value (NPV) of project X if the cost of capital is 6%. Should this project be undertaken? Explain your reasoning.