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Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction builds and sells water features and
Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction builds and sells water features and fountains and has an aftertax cost of capital of 10.3 percent. Sister Pools is considering building and selling its own water features and fountains. The initial cash outlay for this project would be $80,000. The expected net cash inflows are $17,000 a year for seven years. What is the net present value of the Sister Pools project?
-$1,044.14
$1,951.97
$2,262.08
-$1,508.02
$1,219.79
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