Calco Is a Multi-Divisional Firm with a Weighted Cost of Capital

Calco is a multi-divisional firm with a weighted cost of capital of 14 percent and a risk-adjusted discount rate for its can division of 17 percent.A planned expansion in the can division requires a net investment of $170,000 and results in expected cash inflows of $42,000 a year for seven years.Should Calco invest in this expansion?

A) Yes, NPV = $10,096
B) Yes, NPV = $9,896
C) No, NPV = -$5,276
D) No, NPV = -$9,896