Question 4: Gillette had developed a new razor. The company was evaluating introducing the new product and had developed the following projections. Starting from year 6, Revenue, COGS, Op. Expenses will be the same as year 5, and go on forever. The project involves a $10,000,000 investment for a machine (in year 0) that is depreciated on a straight-line basis for 4 years (year 1 to year 4) to a salvage value of zero. No additional capital investments are required after the initial $10,000,000. Calculate the NPV of the Gillette New Razor Project with a 15% OCC and 35% tax rate. (4 points)

Year	0	1	2	3	4	5	6, 7, 8,
Revenue		$10,000,000	$15,000,000	$20,000,000	$21,000,000	$22,050,000	same as yr 5
COGS		$5,000,000	$7,500,000	$10,000,000	$10,500,000	$11,025,000	same as yr 5
Op. Expenses		$2,000,000	$2,500,000	$3,000,000	$3,150,000	$3,307,500	same as yr 5