a) What is the NPV of the project (in $ million)?

Intro It is the end of 2020. You're a financial analyst working for Apple. The company is considering producing a new wearable television set and is predicting the following sales (in $ million). Assume all cash flows occur at the end of the year. | A B C D E F 2021 2022 2023 2024 2025 40 52 62.4 68.64 | 70.01 | 2 | Sales After 2024, sales are expected to grow by 2% forever. COGS and SG&A are expected to add up to 60% of sales and depreciation is expected to be 10% of sales. To start production at the beginning of 2021, Apple has to invest $100 million now to build a new factory. After 2021, the factory needs to be expanded to maintain the same fixed asset turnover (saleset fixed assets) as in 2021. Net working capital consists mainly of inventory of electronics components, minus some current liabilities. Net working capital is expected to be always 30% of sales. Apple has a beta of 0.75. Its target capital structure weight for equity is 95% and the expected return on the S&P 500 is 5.3%. The average yield on its bonds is 6%, while the yield on Treasury bonds is 2%. Apple's marginal tax rate is 16%. Intro It is the end of 2020. You're a financial analyst working for Apple. The company is considering producing a new wearable television set and is predicting the following sales (in $ million). Assume all cash flows occur at the end of the year. | A B C D E F 2021 2022 2023 2024 2025 40 52 62.4 68.64 | 70.01 | 2 | Sales After 2024, sales are expected to grow by 2% forever. COGS and SG&A are expected to add up to 60% of sales and depreciation is expected to be 10% of sales. To start production at the beginning of 2021, Apple has to invest $100 million now to build a new factory. After 2021, the factory needs to be expanded to maintain the same fixed asset turnover (saleset fixed assets) as in 2021. Net working capital consists mainly of inventory of electronics components, minus some current liabilities. Net working capital is expected to be always 30% of sales. Apple has a beta of 0.75. Its target capital structure weight for equity is 95% and the expected return on the S&P 500 is 5.3%. The average yield on its bonds is 6%, while the yield on Treasury bonds is 2%. Apple's marginal tax rate is 16%