Logic Legal Leverage (LLL) is evaluating a project that has a beta coefficient equal to 1.4. The risk-free rate is 2 percent and the market risk premium is 6 percent. The project, which requires an investment of $370,000, will generate $149,000 in after-tax operating cash flows for the next three years. Should LLL purchase the project? Do not round intermediate calculations. Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any.
This question has three answers.
The project -should or should not be purchased because the net present value, that is $ , is greater than or lower than or equal to zero.