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You are trying to evaluate expansion plans for HEB that will be financed with no...

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Accounting

You are trying to evaluate expansion plans for HEB that will be financed with no debt. For this project the discount rate is 9%. Your cash flows will be $1 M, $3 M, and $4 M for the first 3 years and grow at 3% from then on. If this expansion costs $50 M, what is the NPV?

A) $0.7 M

B) $5.2 M

C) $9.6 M

D) $25.2 M

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