Biogen Inc. is considering a capital expansion project. The initial investment of undertaking this project is $238,200. 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 $42,350, $47,024, $94,752, $82,512 and $120,456 respectively.

Biogen has a weighted average cost of capital of 28%.

____________________________________________ Based on Biogen's weighted average cost of capital, 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 Biogen undertake the investment project?

Options:

NPV=$148,894.00. Biogen shall undertake the investment project since NPV>0.

NPV=-$65,436.19. Biogen shall not undertake the investment project since NPV<0.

NPV=-$51,122.02. Biogen shall not undertake the investment project since NPV<0.

NPV=$29,778.80. Biogen shall undertake the investment project since NPV>0.