a. Suppose that the manager wants to raise $12M to invest in a project that would provide $4M per year for the next 6 years. Given an 11 percent cost of capital, what is the NPV of the project? Should the manager make this investment?

b. Suppose that the project now has a disposal cost of $7M at the end of year 6. Assume that the firms cost of capital is still 11 percent, should the manager make this investment?