GM has just designed a new Saturn. It forecasts sales of 200,000 cars per year at an average price of $18,000. Costs are expected to be $17,000 / car. The model will sell for 4 years and GM expects an inventory of 40,000 cars. What is the NPV of the project? The tax rate is 40% and r = 10%

If the corporate income tax rate is 21%, what would be the project's NPV?

In order to start the project, GM needs to invest $20,000 to purchase equipment, and the equipment is expected to be depreciated using the straight-line method for the full cycle of the project with a salvage value of $5,000. If the tax rate is still 21%, what would be the project NPV?