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B5. Consider the following investment in a manufacturing facility: capital cost is $250 million, all of which can be depreciated in equal amounts for tax

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B5. Consider the following investment in a manufacturing facility: capital cost is $250 million, all of which can be depreciated in equal amounts for tax over ten years; working capital of $65 million; tax rate of 30 percent; and net revenue of $45 million in the first year growing at 3 percent PA. The investor can borrow unlimited funds at 6 percent PA; and their discount rate for similar investments is 15 percent. Calculate the net present value of the investment

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