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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 consider this a five year project and calculated cash flows as follows. If Jewel believes this project's WACC is 20%, 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

$2,100

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