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What is the up-front cost of the project for todd industries

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Problem 1: Todd Industries is considering Project AA 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 10% 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?

Year:             0               1               2           3              4

CFS:             X                $560        $314       $181          $ 14

a. -$ 880.25

b. -$ 914.15

c. -$ 941.70

d. -$1,005.00

e. -$1,069.00

Reference no: EM132985625

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