(Answered) Lululemon athletica is considering introducing a new line

Finance

Lululemon Athletica is considering introducing a new line of yoga wear that is expected to increase the company's sales by $10 million in the first year, and growing by 3% every year thereafter. If the cost of introducing the new product line is $40 million today, and Lululemon's WACC is 9.4%, what is the NPV of the project?

A. $468.75 million

B. $66.38 million

C. $196.25 million

D. $319.15 million

E. $116.25 million

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