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The managers of LLL Corporation are considering an investment project: developing and selling a new blade for snow plows. The assets for this project would

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The managers of LLL Corporation are considering an investment project: developing and selling a new blade for snow plows. The assets for this project would cost $595,000 (CFo). Subsequent expected cash flows for the lenders and owners providing that $595,000 would be $80,000 each year for 12 years (CF1 - CF12). If the weighted average cost of capital (WACC) for a project of this type would be 7% per year, what do we compute the project's net present value (NPV) to be? Hint: use the Basic Time Value of Money table attached to this quiz or a financial calculator. A. $28,427 B. $40,415 c. $836,076 D. $130,592 E. $635,415

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