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Your firm is considering launching its new project on a vaccine for a virus. You estimate that the project will provide the following annual free
Your firm is considering launching its new project on a vaccine for a virus. You estimate that the project will provide the following annual free cash flows (FCFS): Year 1 Year 2 Year 3 FCF $200M $100M $100M The project would require an initial up-front investment of $150M. In addition, you estimate that the appropriate cost of capital for the project of this risk class is 15.0% per annum. Given the above expected cash flows, what is the NPV of the project? Would you accept the project? Select one: a. - $20M; Reject b. -$28.88M; Reject C. +$125.2M; Accept d. +$250M; Accept e. +$165.3M; Accept
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