Teal Jungle, which currently operates a(n) food truck, is considering project A, which would involve opening a(n) laundromat. For most of its existence, Teal Jungle has operated a(n) food truck, laundromat, and race track. Project A would require an initial investment of 10,217 dollars and is expected to produce annual cash flows of 1,265 dollars each year forever with the first annual cash flow expected in 1 year. What is the NPV of project A, based on the information in this paragraph and the following table and applying the pure play approach to determining a projects cost of capital?

Firm

Line of business

WACC

Teal Jungle

food truck

16.49 percent

Platinum Water

laundromat

13.77 percent

Red Royal

race track

13.13 percent

Silver Sun

food truck, laundromat, and race track

10.41 percent

Teal Jungle, which currently operates a(n) food truck, is considering project A, which would involve opening a(n) laundromat. For most of its existence, Teal Jungle has operated a(n) food truck, laundromat, and race track. Project A would require an initial investment of 10,217 dollars and is expected to produce annual cash flows of 1,265 dollars each year forever with the first annual cash flow expected in 1 year. What is the NPV of project A, 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 Teal Jungle food truck 16.49 percent Platinum Water aundromat 13.77 percent Red Royal race track 13.13 percent Silver Sun food truck, laundromat, and race track 10.41 percent