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Jewel Osco is considering a small expansion of its flower & garden section at its northwest Chicago store. If it spends $6,250 to move its
Jewel Osco is considering a small expansion of its flower & garden section at its northwest Chicago store. If it spends $6,250 to move its nursery out of the parking lot and into a small Florida room, Jewel managers believe it will improve profits to the store. Managers miscalculated and the fifth year cash flow is $0.00 (not $2,100) If Jewel believes this project's WACC is 10%, what is the NPV of this project?
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flows | -$6,250 | $2,000 | $2,025 | $2,050 | $2,075 | $0.00 |
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