Beats wants to build a new factory to produce its headphones. It will cost $$250$ million initially to build the factory over the course of $12$ months, which will be worthless after $10$ years. The factory will be depreciated linearly to $$0$ over $10$ years. Beats already owns the land on which the factory will be built. The land is currently worth $$10$ million and was purchased for $$2$ million eight years ago.

After completion of the factory at the end of year $1,$ Beats expects earnings before interest and taxes $($EBIT$)$ of $$34$ million each year for $10$ years. The company also has to add inventory $($components$)$ worth $$5$ million just before operation starts at the end of the first year.

Beat's marginal tax rate is $21\%$ and the appropriate cost of capital for this project is $9\%.$

Attempt $1/6$ for $5$ pts$.$

Part $1$

What is change in gross fixed assets in year $0,$ i$.$e$.,$ at the start of the project $($in $ million$)?$

$0+$ decimals

Attempt $1/6$ for $5$ pts$.$

Part $2$

What is the free cash flow in year $0($in $ million$)?$

$0+$ decimals

Attempt $1/6$ for $5$ pts$.$

Part $3$

What is the free cash flow in year $1($in $ million$)?$

$0+$ decimals

Attempt $1/6$ for $5$ pts$.$

Part $4$

What is the annual depreciation in year $2($in $ million$)?$

$0+$ decimals

Attempt $1/6$ for $5$ pts$.$

Part $5$

What is the free cash flow in year $2($in $ million$)?$

$1+$ decimals

Attempt $1/6$ for $5$ pts$.$

Part $6$

What is the free cash flow in year $11($in $ million$)?$

$1+$ decimals

Attempt $1/6$ for $5$ pts$.$

Part $7$

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

$1+$ decimals