Toyota is planning a new fuel cell powered car. It will cost $$1$ billion initially and an additional $$0\mathrm{.}6$ billion the year after to build the factory, which can then be linearly depreciated to zero over $20$ years, and be sold for $$900$ million at the end of year $21.$

The company also has to put up $$150$ million to buy components just before operation starts at the beginning of year $2.$

For each of the $20$ years of operation $($years $2$ to $21),$ Toyota expects to sell $1$ million cars at a price of $$40,000.$ Labor and components for each car add up to $$38,500$ per car. After completion at the end of year $1,$ it also costs $$800$ million each year to run the factory, independent of the level of production.

Toyota's marginal tax rate is $34\%$ and its cost of capital for this project is $8\%.$

Attempt $1/5$ for $10$ pts$.$

Part $1$

What is the annual depreciation $($in $ million$)?$

$80$

Correct $$

Attempt $1/5$ for $10$ pts$.$

Part $2$

What is EBIT in each year of operation $($in $ million$)?$

$620$

Correct $$

Attempt $1/5$ for $10$ pts$.$

Part $3$

What is the change in net working capital at the end of year $1($in $ million, as a positive number$)?$

$150$

Correct $$

Attempt $1/5$ for $10$ pts$.$

Part $4$

What is the after$-$tax salvage value $($ATSV$)$ of the factory in year $21($in $ million$)?$

$594$

Correct $$

Attempt $3/5$ for $8$ pts$.$

Part $5$

What is the cash flow from assets at the end of year $1($in $ million$)?$

$0+$ decimals

Attempt $2/5$ for $9$ pts$.$

Part $6$

What is the present value of the cash flow from assets from year $2$ to $20($ignoring the one for year $21$ for now$)($in $ million$)?$

$0+$ decimals

Attempt $1/5$ for $10$ pts$.$

Part $7$

What is the cash flow from assets at the end of year $21($in $ million$)?$

$0+$ decimals

Attempt $1/5$ for $10$ pts$.$

Part $8$

What is the NPV of this project $($in $ million$)?$