please solve

As you are putting the finishing touches on your capital budgeting analysis in problem 3 above, a colleague reviews your work. His main complaint is that he belleves that you are missing something. He says that, when we valie firms using the APV method, the value of the firm comes from both the FCFs of the firm and the financing choices that the firm has made. He notes that you have not included any effects of financing on the value of the project. He suggests that you figure out how the project will be financed, and include the value of the financing on your project's NPV. Given that you have been asked to determine if the new product line is a good investment, is your colleague correct? Explain why or why not. (15 points) Problem 3 For reference: You are hired out of college by a consulting firm, and your first client wants help in evaluating an investment proposal. They are looking at a new product line and wondering if it makes financial sense to proceed. This new product line will only last for 3 years... after 3 years, their product line will be abandoned and no additional CFs will be generated. This new product line will need an initial investment today of $60million in new PPE. The firm estimates that this new product will have sales of $100 million every year in each of the next 3 years. Salaries and other production costs will be $50 million each year for the next 3 years. The PPE will be depreciated by $20 million each year for the next three years, such that its book value will be zero at the end of three years. However, you believe that you can sell the used equipment in 3 years for $10 million. Working capital levels will need to increase by $24 million today, but these levels will decrease by $8 million each year until they return to zero in three years. The marketing plan that was already completed for the project cost $6 million, which the firm expects to pay next year. The tax rate for the firm is 40%, and the cost of capital for this project is 10%. Compute the NPV of this project. Is this a good investment for your client? Explain why or why not. (15 points)