Zeus of Adelphi is a Greek yoghurt company. They have undertaken an analysis of a new flavour. If the project is undertaken, the companys analysts believe that it will generate operating cash flows of $11,000,000 each year for 7 years. The product will require capital investment of $20,000,000 and additional working capital of $12,000,000 (to be returned at the end of the project). The discount rate is 16%. What is the net present value (NPV) and should the project be undertaken?

Select one:

a. $16,670,174.18; Yes, the project should be undertaken.

b. - $2,001,009.65; No, the project should not be undertaken.

c. - $5,666,712.89; No, the project should not be undertaken.

d. $15,606,772.38; Yes, the project should be undertaken.

e. $10,998,004.22; Yes, the project should be undertaken.