Investa AB has a WACC of 14% and a tax rate of 30%. The company is evaluating an investment of Dollars 400,000. The investment is estimated to give rise to an increased annual FCF (free cash flow) of Dollars 80,000. In addition, it is estimated that a buyer will pay the residual value of 20,000 after five years. The company writes off according to the 20-rule. What will be the NPV of the investment? Rounded answers

(These are the alternatives)

a) -86

b) 14

c) -118

d) -26