1)

Initial Outlay$50 million

Year 1$10 million

Year 2$20 million

Year 3$20 million

Year 4$10 million

Year 5$5 million

The required rate of return is 15%. What is the NPV of the project?Round to the near hundredth million. Do not include any unit such as $, %, etc. (i.e. if your answer were -$1.23 million, type in -1.23 as your answer without $ and million)If there are multiple answers, then type NA.

2)

Initial Outlay$50 million

Year 1$10 million

Year 2$20 million

Year 3$20 million

Year 4$10 million

Year 5$5 million

The required rate of return is 15%. If the firm wants to make the profitability index equal to 1 for Project Alpha, the initial outlay has to be:

Round to the nearest hundredth million without a dollar sign. (i.e. if your answer is $12.34 million, then type 12.34 as your answer.)