A Project Will Generate $1 Million Net Cash Flow Annually

A project will generate $1 million net cash flow annually in perpetuity.If the project costs $7 million, what is the lowest WACC shown below that will make the NPV negative?

A) 10%
B) 12%
C) 14%
D) 16% $1 million/.16 = $7 million
$6) 25 million < $7 million
Therefore, NPV < $0