QUESTION 10 Berkeley Studios, which currently sells art products, is considering project which would involve teaching art lessons. For most of its existence Berkeley Studios sold art products, taught art lessons, and painted murals. Project Q would require an initial investment of $87,300 today and is expected to produce annual cash flows of $10,200 each year forever with the first annual cash flow expected in 1 year. What is the NPV of project Q based on the information in this paragraph and the following table and applying the pure play approach to determining a project's cost of capital? Firm Line of business WACC Berkeley Studios Sells art products 199.5 percent Frisco Frescos Paints murals at residential and commercial sighes 8.2 percent NorCal Art Teaches art lessons 4.4 percent Art Factory Sells art products, teaches art lessons, & paints murals 7.7 percent a. 5144518 (plus or minus 510) b. 520,068 (plus or minus 510) C$37,090 plus or minus 510) d. 545,168 (plus or minus 510) e. None of the above is within $10 of the correct