Capital Budgeting Stolt-Neilsen Ltd is a Norwegian maritime transportation company with operations all over the world. Piracy is becoming an increasingly worrying problem for firms like Stolt-Neilsen and they continually seek ways to counter this threat. The company is considering a microthreat weapons system that will provide countermeasures capability against small hostile naval craft. The system costs £35 million to install in its whole fleet but it is expected to save £12 million per annum for the next 4 years in lower insurance premiums, retained custom and new orders. The current spot exchange rate is Nkr9/£ and the current risk-free rate in Norway is 4 per cent, compared with that in the United Kingdom of 2 per cent. The appropriate discount rate for the investment is estimated to be 20 per cent, the Norwegian cost of capital for the company. At the end of 4 years, it is expected that enough pirate groups will have access to technology that makes the system obsolete. As a result, there is no resale value. What is the NPV of the project?