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Saucer Inc. is interested in developing a new dish. The sales will be $250 million per year for 5 years. Operating costs are $210 million

Saucer Inc. is interested in developing a new dish. The sales will be $250 million per year for 5 years. Operating costs are $210 million per year for 5 years. The project requires an additional machine that costs $120M to be depreciated to a zero book value on a straightline basis over 5 years. The machine can be sold for $10 million at the end of year 5 (salvage value). The project will generate $1,000,000 per year in interest expense. The net operating working capital per year is equal to 3% of the next years sales, so net operating working capital is returned at the end of year 5. Operating costs do not include depreciation and interest expenses. The cost of capital is 7% and the tax rate is 25%. The project ends after 5 years and there is no horizon value. Find the NPV. Should they develop the dish? Explain. Please show your work :)

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