Intro Amazon wants to make and sell its own smartphones. It will cost $110 million initially to build the factory over the course of 12 months, which will be sold for $80 million 10 years after production starts. The factory will be depreciated linearly to $0 over 10 years. Amazon already owns the land on which the factory will be built. The land is currently worth $10 million and was purchased for $2 million eight years ago. After completion of the factory at the end of year 1, Amazon expects earnings before interest and taxes (EBIT) of $35 million each year for 10 years (in years 2 to 11). The company also has to add inventory (components) worth $7 million just before operation starts at the end of the first year. Amazon's marginal tax rate is 28% and the appropriate cost of capital for this project is 5%. Part 1 IB Attempt 6/10 for 10 pts. What is net capital spending in year 0, i.e., at the start of the project (in $ million)? 0+ decimals Submit 18 Part 2 Attempt 1/10 for 10 pts. What is the cash flow from assets in year 0 (in $ million)? 0+ decimals Submit Part 3 18 Attempt 1/10 for 10 pts. What is the cash flow from assets in year 1 (in $ million)? 0+ decimals Submit Part 4 Attempt 1/10 for 10 pts. What is the annual depreciation in year 2 in $ million)? 0+ decimals Submit Part 5 IB | Attempt 1/10 for 10 pts. What is the cash flow from assets in year 2 (in $ million)? 1+ decimals Submit Part 6 IB | Attempt 1/10 for 10 pts. What is the after-tax salvage value of the factory in year 11 (in $ million)? 0+ decimals Submit IB Part 7 Attempt 1/10 for 10 pts. What is the cash flow from assets in year 11 (in $ million)? 0+ decimals Submit 18 | Attempt 1/10 for 10 pts. Part 8 What is the NPV of this project (in $ million)