.A firm is considering a simple investment project. If it goes forward, then the firm must pay $6 million now and $4 million in one year. Two years from now the project is expected to pay back $5 million, and three years from now it is expected to pay back another $10 million. Suppose that the firms opportunity cost of capital is 25%.

1. What is the present value of the project?
2. Under what conditions should the firm do the project?