F17,F INA 3103.HW5.pdf [page 1 of 3) F12 FINA 3103 HW5 Q Search Insert Page Layout Formulas Data Review View Share Font Aigoment Number Cels Editing Cell Sityles $55 82 Increast in canh ho 510 512 538 516 518 520 $20 Initial investment Increase in free cash flows $33 000 out ef 20 You have the option to invest in the project now, This will cost you $55 million today. The project will generate cash flows for six years (given in the table) and you can salvage the project at the end of year six for an addizional $20 million. Main Project Increase in cash ows $10$12 $14$16 Sta sas , $20 $25 $30 Moreaver, after two years, you will have the option to invest in an expansion (that is, expand the same project) by spending an adsitional $33 million at the beginning of year four. The expansion project will generate more cash fiows for three years igiven in the tablel and you will 1 can salvage the expansion at the end of year six for an additional $30 milion 2. Answer the following questions in Excel (ie, using the appropriate fuections In (sell. You2 can check the file "F17_FINA 3103 Principles of Finance_NPVxsx on eCourses for Page 1 8 lthe table includes selected annual rates of return on the S&P 500 index from 2007-2014Ue ONLY assianment NPV+ 3. 110 points) Calculate the NPV and IRR of the main project without the expansion