Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost $3.00 million and the results suggested that Six Flags add a kid's only roller coaster.

Suppose that Six Flags decides to build a new roller coaster for the upcoming operating season. The depreciable equipment for the roller coaster will cost $50.00 million and an additional $5.00 million to install. The equipment will be depreciated straight-line over 20 years.

The marketing team at Six Flags expects the coaster to increase attendance at the park by 5%. This translates to 118,899.00 more visitors at an average ticket price of $40.00. Expenses for these visitors are about 19.00% of sales.

There is no impact on working capital. The average visitor spends $21.00 on park merchandise and concessions. The after-tax operating margin on these side effects is 37.00%. The tax rate facing the firm is 35.00%, while the cost of capital is 9.00%.

a) What is the project cash flow for year 0? (answer in terms of MILLIONS)

b)What is the project cash flow for year 1? (express answer in millions)

c)What is the NPV of this coaster project if Six Flags will evaluate it over a 20-year period? (Six Flags expects the first year project cash flow to grow at 5% per year, going forward) (Express answer in millions)