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A proposed nuclear power plant will cost $3.2 billion to build and then will produce cash flows of $400 million a year for 15 years.

A proposed nuclear power plant will cost $3.2 billion to build and then will produce cash flows of $400 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $1,000 million.(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places.)

a.What is the NPV of the project if the discount rate is 4%?

b.What is the NPV of the project if the discount rate is 15%?

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