Real Madrid stadium requires seats for home and away end. The seating project results in $1.2 MM/yr of annual savings. The seating project requires a fixed capital investment of $3.5 MM. The working capital investment is taken as 15/85 of the fixed capital investment. The annual operating cost of the stadium seating is $0.5 MM/yr. Straight-line depreciation is calculated over 10 years (no salvage value). The corporate income tax rate for the project is 35%. Assuming a discount rate of 15%.. Assume that the FCI and WCI are expended immediately at the outset of the project.

a. Determine the NPV after 10 years, the Discounted Cash Flow Payback Period and the Discounted Cash Flow Return on Investment