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Suppose MMM has a project opportunity. The project has an initial cost of $10 million. The project's expected cashflows are $1 million the first year,

image text in transcribed Suppose MMM has a project opportunity. The project has an initial cost of $10 million. The project's expected cashflows are $1 million the first year, $2 million the second year, and will increase by 0.019 per year thereafter. MMM has an equity cost of capital of 0.080 , a debt cost of capital of 0.050 , a capital structure of 40% equity and 60% debt, and has a tax rate of 0.34 . What is the NPV of this project (in millions)? Instruction: Type ONLY your numerical answer in the unit of millions, NO \$ sign, NO comma, and round to two decimal places. E.g., if your answer is $7,001.56 million, you should type ONLY the number 7001.56, NEITHER 7,001.6, \$7001.6, $7,001.6, NOR 7002. Otherwise, Blackboard will treat it as a wrong

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