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*These are all apart of the same question, I just really need help here understanding how to do it.. Thank you! Project cash flow (Cash

*These are all apart of the same question, I just really need help here understanding how to do it.. Thank you!

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Project cash flow (Cash Flow From Assets) for Year 1 is:

$5,800,600

$4,756,384

$7,800,231

$6,800,470

$9,817,500

Project cash flow (Cash Flow From Assets) for Year 3 is:

$12,317,500

$10,826,250

$12,800,555

$13,800,000

$9,340,844

What is the Projects NPV? Should we take the Project?

$3,437,500; yes

$1,634,677; yes

-$2,800,412; no

-$3,800,605; no

$6,056,010; yes

QUESTION 15 Use the following information for the next four questions: The Umbrella Corporation is considering expanding one of its production facilities to research a new type of virus, which will hopefully not result in another zombie outbreak. The project would require a $21,000,000 capital investment and will be depreciated (straight-line to zero) over its 3 year life. Incremental sales are expected to be $15,750,000 annually for the 3 year period with costs (excluding depreciation) of 30% of sales. The company would also have to commit initial working capital to the project of $2,500,000. The company has a 30% tax rate, and requires a 12.5% rate of return for projects of this risk level. Project cash flow (Cash Flow From Assets) for Year O is: $16,000,000 -$16,000,000 -$17,000,000 -$23,500,000 -$21,000,000

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