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Up-front cost of the project-knehans industries

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Knehans Industries is considering Project S whose future expected cash flows are shown below. However, the up-front cost of the project (X) is not given. You are told that the project has a WACC of 7% and that the project's NPV is zero. Based on this information, what is the up-front cost of the project, i.e., what is X?

           WACC = 7%

           Year:             0                     1                     2                     3                     4          

           CFS:              X                  $425               $710               $290               mce_markernbsp;35

a. -$1,000.00

b.  -$1,236.23

c.  -$1,280.77

d. -$1,304.05

e.  -$1,460.00

Reference no: EM132484334

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