1) A machinery upgrade project will cost $14 million, and produce cost savings of $1 million in perpetuity.

What is the project NPV if the required rate of return is 11%?

Enter answer in millions, to two decimal places.

2)

Your company is considering a project that requires an initial investment of $12 million, and is expected to produce cash flows of $4 million each year for 10 years. At the end of year 11, the project will require site cleanup that is expected to cost $11 million. What is the project NPV if the company uses 12% as its cost of capital?

Enter answer in millions, to two decimal places.

3)A project with an initial cost of $591 is expected to produce a stable cash inflow for 9 years. Using a required return of 11%, it has been determined that the project's NPV is 82. What must be the size of each of the annual cash flows?