Net present value of opportunity for swim locker

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Swim Locker Inc. sells swimming apparel and accessories; its WACC is 9.5 percent. Time Machine Inc. sells watches and has a WACC of 12.3 percent. Swim Locker is considering adding waterproof watches to their product line. The initial cash outlay for the watch project is $154,000. The expected net cash inflows (incremental to the watch project) are $67,000 a year for 6 years. What is the net present value of this opportunity for Swim Locker?

Reference no: EM133056622

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