ABC Company has an investment proposal. It requires an initial capital outlay of $20 million. The investment will increase revenue by $10 million, increase cash expenses by $2 million and noncash depreciation expense by $5 million each year for the next five years. ABC has a tax rate of 30% and a cost of capital of 10%.

1. Determine the cash flow of the investment.

2. Determine the net present value of the investment. Should the investment be accepted?

3. If the investment generates a net cash flow of $30 million in five years instead, determine the internal rate of return. Should the investment be accepted?

These are the questions that my Professor created it for homework!! Can you please solve it for me? Thank you.