Finance Solution Help!

A) Pharoah Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.05 million. This investment will consist of $2.90 million for land and $9.15 million for trucks and other equipment. The land, all trucks, and all other equipment are expected to be sold at the end of 10 years for a price of $5.30 million, which is $2.40 million above book value. The farm is expected to produce revenue of $2.10 million each year, and annual cash flow from operations equals $2.00 million. The marginal tax rate is 35 percent, and the appropriate discount rate is 9 percent. Calculate the NPV of this investment. (Do not round factor values. Round final answer to 2 decimal places, e.g. 15.25.)

NPV=

THE PROJECT SHOULD BE?

B) A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.47 that consumers will love Happy Forever, and in this case, annual sales will be 1.08 million bottles; a probability of 0.39 that consumers will find the smell acceptable and annual sales will be 220,000 bottles; and a probability of 0.14 that consumers will find the smell unpleasant and annual sales will be only 50,000 bottles. The selling price is $39, and the variable cost is $10 per bottle. Fixed production costs will be $1.01 million per year, and depreciation will be $1.18 million. Assume that the marginal tax rate is 40 percent. What are the expected annual incremental after-tax free cash flows from the new fragrance?

Annual incremental cash flow= $