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Dvoralehs Co-Star, a hyper-personalized astrology app, is considering an investment in a new project which would require $27,000 worth of capital expenditures and an increase

Dvoralehs Co-Star, a hyper-personalized astrology app, is considering an investment in a new project which would require $27,000 worth of capital expenditures and an increase of $63,000 in net working capital that will be recovered at the end of the project. Each year, starting at the end of the first year, the operating cash flows of the project will be $24,000 for 5 years. The project has a WACC of 11%. What is the net present value of Dvoralehs project?

Answers: A.

$99,088.96

B.

-$1,298.47

C.

$36,088.96

D.

$32,512.58

E.

None of these

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