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In 2019, Easy Breathy started selling cloth face masks on Etsy. In 2019, they spent $4,000 on capital expenditures (unrecoverable) and increased their net working

  1. In 2019, Easy Breathy started selling cloth face masks on Etsy. In 2019, they spent $4,000 on capital expenditures (unrecoverable) and increased their net working capital by $5,000 that will be recovered at the end of the project. In 2020, 2021, and 2022 (expected) they earned an operating cash flow of $9,000 per year. Before the end of 2022, they expect to close the Etsy shop. In 2019, no one believed that masks were a thing. The project was so risky and so crazy its WACC is 15%. What is the net present value of the project?

    A.

    $12,901.40

    B.

    None of these

    C.

    $18,000.00

    D.

    $14,836.61

    E.

    $11,549.03

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