Bonus problem You own a retail business and generated $40 million in EBITDA on revenues of $ 200 million in the most recent year. You are considering spending $ 20 million in a new computerized inventory system; the investment is depreciable straight line over 5 years to a salvage value of zero. If you install the system, you expect to see two primary benefits: Your revenues which had been expected to be flat ($200 million each year) for the next 5 years will grow 5% each year for the next 5 years with the new system in place ($210 million next year, $ $220.5 million in year 2 etc...) Your EBITDA margin (as a percent of revenues) will remain unchanged at current levels for the next 5 years but you do expect your non-cash working capital which is currently 10% of revenues to drop to 5% of revenues immediately and remain at that percent level each year for the next 5 years. At the end of year 5, you expect to scrap the new inventory system and get no salvage value for the system. The working capital is expected to revert back to 10% of revenues at the point in time. Your marginal tax rate is 40% and your cost of capital is 10%. Question: Estimate the NPV of the investment