P44:

A project requires an initial investment of $20.69 million to buy new equipment, and will provide cash flows for 4 years. After 4 years, the equipment will be worthless. The expected annual sales due to the project are $50 million, expected annual costs are $42 million and annual depreciation is $5 million. The appropriate cost of capital for the project is 12%. The company's tax rate is 27%.

Question: What is the project's annual free cash flow in years 1 to 4 (in $ million)? What is the project's internal rate of return? What is the NPV of the project (in $ million)?