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Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year: Year

Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year:

Year Cash flow
0 -50
1 -120
2 20
3 40
4 80
5 80

The company requires a return of 15% from this project.

Find the following parts:

1: What is the NPV (in $ million)?

2: What is the project's profitability index?

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