MEC is evaluating a proposal for a new alpine snowshoe targeted at mountaineering enthusiasts. The project is expected to last three years and will generate annual free cash flows as shown in the table below. MEC targets a debt-to-enterprise value ratio of 50% for all of its projects. The firm has a current cost of debt of 4%, a current cost of equity for 12%, and a marginal tax rate of 30%. Assume that the new project is of average risk to MEC. Using the WACC method, calculate the NPV of the project. Select the best answer.

Free Cash Flow Projects (in $ millions)
Year	0	1	2	3
Free Cash Flows	-100	80	110	40

	I.	$130 million
	II.	$102.14 million
	III.	$100.13 million
	IV.	$538.47 million
	V.	$87.59 million