Use the Following Information to Answer the Question(s)below

question 11

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metal is evaluating a project that requires an investment of $150 million today and provides a single cash flow of $180 million for sure one year from now.Rearden decides to use 100% debt financing for this investment.The risk-free rate is 5% and Rearden's corporate tax rate is 40%.Assume that the investment is fully depreciated at the end of the year.
-The NPV of this project using the APV method is closest to:

• A)$10 million
• B)$13 million
• C)$42 million
• D)$71 million

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