Solve for NPV: The possibility of opening a $90 million outlet mall where the company would charge retailers an annual rent for the space they rent and in addition it would receive 5% of each stores gross sales. Inflation was forecasted at 2%a year with a tax rate of 35% and a cost of capital at 9% in nominal terms. Please see the attached table for further information.

Year 0 Investment: Land Construction Operations: Rentals Share of retail sales Operating and maintenance costs Real estate taxes 1 2 30 20 30 10 2 2 4 2 4 3 3 4 12 24 10 4 12 24 10 4 5 17 12 24 10 4 1. Calculate NPV 2. Construct a scenario analysis of the project and explain what these analyses reveal about the project's risks and potential value to the firm The outlet mall is estimated to be over $90million. The company would charge retailers an annual rent for the space they occupied and in addition it would receive 5% of each store's gross sales Construction will likely take 3 years and could depreciated in a straight-line over 15 years starting in year 3 Construction costs, revenue, operating, and maint. Costs, and real estte taxes were all in line to inflate at a forcasted 2% a year and a company tax rate was 35% and the cost of capital was 9% in nominal terms What if inflation jumped 10%