14. (25 Points) As the key financial manager of Psycho Systems, a manufacturer of internet equipment, you are considering building a new plant. The new plant has an initial cost of $600 million, will last 5 years, and will be depreciated to a book value of $100 million on a straight-line basis. The salvage value of this new plant is expected to be $150 million. Sales and costs are expected to be $240 million and $80 million, respectively, in each of the five years the plant is in existence. In addition, inventories will immediately rise by $20 million and accounts payable will rise immediately by $50 million. Accounts receivable will rise by $30 million at the end of the 1st year (i.e., at t=1). Inventories, accounts receivable and accounts payable will return to original levels at the end of the project's life. If the WACC for this project is 10% and the marginal tax rate is 25% and the capital gains tax rate is 25%, what is the NPV of the plant? Be sure to organize and label your work so that I can clearly see what you are doing. I RECOMMEND THAT YOU WRITE THE NUMBERS "in millions" (i.e. as if the word millions was written next to each number). I have provided a table with rows to help present your work. There should be more than enough lines. NPV = WRITE YOUR FINAL ANSWER HERE TIME 0 1 2 3 4 5