Fianace

International Buckeyes is building a factory that can make 1 million buckeyes a year for five years. The factory costs $9 million. In year 1, each buckeye will sell for $4.50. The price will rise 5% each year. During the first year, variable costs will be $0.375 per buckeye and will rise by 2% each year. The company will depreciate the factory at a CCA rate of 25%. The company expects to be able to sell the factory for $750,000 at the end of year 5. The proceeds will be invested in a new factory. The discount rate for risky cash flows is 25%. The discount rate for risk-free cash flows is 24%. Cash flows, except the initial investment, occur at the end of the year. The corporate tax rate is 38%. What is the NPV of this project? (Note: the CCA should be discounted at the risk-free discount rate)