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PLEASE SHOW YOUR WORK!! Project analysis ( Pset 4 ) . . Your job: Determine whether HP should produce a high - end smartphone. The

PLEASE SHOW YOUR WORK!! Project analysis (Pset 4).. Your job: Determine whether HP should produce a high-end smartphone. The project lasts 6 years. hpl Investments $30 million in year 0 for machinery. Assume straight-line depreciation over 6 years Machinery will be sold for $2.5 million at the project's end NWC of $3 million to begin the project, which will increase at a 4% rate each year Revenue and cost estimates $50 million in year 1, growing at 10% yearly after Annual operating costs of (a) $30 million fixed, and (b) variable costs of 30% of annual revenues Tax rate =30%, Discount rate =12%

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