"Party Sea" is considering buying sailing catamarans for $24,000,000. The catamarans will have an economic life of 12 years and will depreciate at a constant rate each year of their life. The company is planning to rent out these catamarans for a total of 5 years, after which they will be sold for a market price of $22,000,000. The estimated annual after-tax profits are summarized in the table below. "Party Sea" faces a 34% tax rate. Other companies in the same line of business typically generate a 12% return.

Answer the following questions. All dollar amounts should be rounded to whole dollar, and do not use the "$" signs.

(a) Fill out the missing value in the table below!

Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Pay $24,000,000 for the catamarans	Profit = $3,000,000	Profit = $3,500,000	Profit = $4,000,000	Profit = $4,500,000	Profit = $5,000,000
					After-tax salvage value = $

The estimated Net Present Value equals $.

(b) "Party Sea" would like to address some uncertainty that it has regarding some of the estimated values for the future years of this catamaran project. In particular, there is a chance that the business goes really well, in which case in each year the annual profit will be 20% higher. This, however, implies that the catamarans will be used a lot more heavily. And so their future market price at the time of sale is likely to be 15% lower. Overall, what will be the effect on the profitability of this project??

First, for this scenario, fill out the missing values in the table below!

Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Pay $24,000,000 for the catamarans	Profit = $	Profit = $	Profit = $	Profit = $	Profit = $
					After-tax salvage value = $

The recalculated estimated Net Present Value equals $.

The new numbers imply that under this scenario the Net Present Value will go __________ (type up or down) by ___________% (round to TWO decimal places, e.g., type 12.34 for 12.34%, and do not use the "%" sign).