Philly Pretzels Inc. operates fast food restaurants and is considering producing packaged products for sale at grocery stores. The initial investment in its production facilities to start the venture will be $60 million and will be depreciated straight-line over 10 years to a salvage value of $10 million. The packaged products business is expected to generate revenue of $100 million per year for the next 10 years with an EBITDA profit margin of 15%. The non-cash net working capital is expected to be 10% of revenues. The company's cost of capital is estimated at 12% while the cost of capital for other firms in the packaged food business is 9%. Its marginal tax rate is 30%. a) Estimate the Net Present Value of this investment. b) Now assume that the business will continue in perpetuity after year 10 and estimate the Net Present Value with this scenario. c) Assuming that the average expected inflation for the next 10 years is 4.5%, estimate the Real Net Present Value of the company based on its real cost of capital.