1. ABC Inc. is considering a project that has the following cash flow and WACC data.

What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected.

WACC: 7 %

Year 0 1 2 3 4 5

Cash flows -$1,200 $200 $400 $400 $300 $300

Cash Flows: Year 0 = -$1,200 Year 1 = $200 Year 2 = $400 Year 3 = $400 Year 4 = $300 Year 5 = $300

WACC = 7%

NPV = NPV =