Lululemon Athletica Is Considering Introducing a New Line of Yoga

Multiple Choice

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) $196.25 million
B) $66.38 million
C) $116.25 million
D) $468.75 million
E) $319.15 million