The Green Acres Lawn Company produces and sells lawn care products, such as fertilizers, seeds, and lawnmowers. Its market-beta is 1.30. It is considering diversifying into the manufacture of snowblowers to offset the seasonality of its current product lines. Management has estimated the market-beta for this new line of business to be 1.60. The relevant risk-free rate is 4%, and the market equity risk premium is 7%. Assume that 70% of the business will remain in lawn care products if the firm undertakes this project.
-Refer to the information above. The snowblower project will cost $1.5 million. Management believes the project is equally likely to increase cash flows by $150,000 a year in perpetuity or
By $300,000 a year in perpetuity. What is the NPV of the snowblower project? Round your
Answer to the nearest dollar.

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The Answer of The Green Acres Lawn Company produces and sells lawn care products, such as fertilizers, seeds, and lawnmowers. Its market-beta is 1.30. It is considering diversifying into the manufacture of snowblowers to offset the seasonality of its current product lines. Management has estimated the market-beta for this new line of business to be 1.60. The relevant risk-free rate is 4%, and the market equity risk premium is 7%. Assume that 70% of the business will remain in lawn care products if the firm undertakes this project.
-Refer to the information above. The snowblower project will cost $1.5 million. Management believes the project is equally likely to increase cash flows by $150,000 a year in perpetuity or
By $300,000 a year in perpetuity. What is the NPV of the snowblower project? Round your
Answer to the nearest dollar.

The Green Acres Lawn Company Produces and Sells Lawn Care