Assume that inflation is 2.4% APR, compounded monthly .It's the end of March 2021 and women college basketball the most popular it's ever been. CBS is considering buying the Women's NCAA tournament rights from the current owner, ESPN. Assume that ESPN's contract goes until the end of March 2024 and is currently valued at $ 4.6 million. CBS has already spent $250,000 for market research to survey households' interest. This research yielded the following projections for advertisement revenue during the Women's NCAA tournament: $7 million in 2022, $10 million in 2023 and $12 million in 2024. Because ads are booked ahead of time but revenue from ad spots is usually collected later, CBS' working capital will jump from $120 million to $123 million next year. It will go back to $120 million by March 2024. CBS will carry fewer men's NCAA tournament games if they air the women's games. They can sell the rights for the men's games for $5 million today, but they will lose $4 million in advertisement from the men's games for each of the next 3 years. To cover the women's games, CBS needs new production equipment valued at $12 million. The equipment is depreciated straight-line over 4 years and CBS thinks it can sell it for $5 million after the 2024 tournament. The discount rate for this project is 11%. The tax rate is 21%. Do the capital budgeting analysis for this project, calculate its NPV and present a decision about the project. [20]