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answer is NPV = 5.44 million but please show work Practice Question: The following project takes place over a 20 year period of time. All

answer is NPV = 5.44 million but please show work image text in transcribed
Practice Question: The following project takes place over a 20 year period of time. All references to time are relative to the beginning of the project. Suppose that an electric motor factory wil take a year to build: $2 million is spent right away, and another $2 million is spent at the end of the first year. Also, suppose the factory is expected to lose $1.0 million at the end of year two and $0.5 million at the end of year three. At the end of each of the years, four through 20, it will earn $0.95 million, when it will be scrapped for $1.0 million at the end of year 20. If the interest rate is 4 percent, what is the NPV? Is the investment worthwhile

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