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6. (6 points) QQQ is considering a $440 million project. This project is expected to generate revenue for four years. The net operating income before

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6. (6 points) QQQ is considering a $440 million project. This project is expected to generate revenue for four years. The net operating income before taxes from this project is expected to be $120 million the first year, $125 million the second year, $130 million the third year and $135 million the fourth year. The $440 million investment represents $40 million in costs that are expensed for tax purposes in the first year and $400 million for assets that are to be capitalized for tax purposes and depreciated over time. These capitalized assets are eligible for bonus depreciation and can be depreciated in the first year. At the end of the four years, the assets will be sold as scrap for $45 million. QQQ's tax rate is 21%. QQQ has researched the risk of this project and determined that the appropriate r given the risk is 9%. Determine if QQQ should invest in this project

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