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XYZ, which currently sells art products, is considering project, which would involve teaching art lessons. For most of its existence, XYZ sold art products, taught

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XYZ, which currently sells art products, is considering project, which would involve teaching art lessons. For most of its existence, XYZ sold art products, taught art lessons, and painted murals, Project Q would require an initial investment of $67,300 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 XYZ Sells art products 82 percent Frisco Frescos Paints murals at residential and commercial sights 14 percent NorCal Art Teaches art lessons 7.7 percent Art Factory Sells art products, teaches, art lessons, & paints murals 95 percent a. $45.168 (plus or minus 510) b. 537,090 (plus or minus 510) c. $144.518 (plus or minus 510) d. 520.068 (plus or minus 510) e. None of the above is within 510 of the correct

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