Bigquiz Corporation
(in millions) ($ millions)
		2018	2019
sales			550
cost of goods sold			400
depreciation			100
interest rate			10.0%
payout			40.0%
tax rate			30.0%
account receivable		26	30
cash		20
inventory		28	32
net fixed asset		300	345
account payable		20	25
note payable		10	10
long-term debt		100	120
common stock		60	60
retained earning		184
shares outstanding			10

1. BigQuiz is evaluating a project, the project will last for five years. The project requires an initial investment of 120 million, sales are 125,150 ,175,200 and 100 units for the next 5 years, unit price is 1million, fixed cost each year is 15 million and variable cost is 0.5million/unit. The project requires an initial working capital of 10 million, working capital will be 10% of total revenue in each of the following years. When the project is over, the machine can be sold for 5 million. BigQuiz adopts MACRS depreciation schedule (20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%). Calculate the NPV of the project. What happens to stock price after the company announce this news?