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Use the following information for the next four questions: The Umbrella Corporation is considering expanding one new type of virus, which will hopefully not result

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Use the following information for the next four questions: The Umbrella Corporation is considering expanding one new type of virus, which will hopefully not result which will hopefully not result in another zombie outbreak. The project would quite a $21,000,000 capital investment and will be depreciated (straight-line to zet) od 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 wit or the 3 year period with costs (excluding depreciation) of 30% of sales. The company would also have to commit initial 12.5% rate of return for projects of this risk level. 16) Project cash flow (Cash Flow From Assets) for Year O is: a) $16,000,000 b) -$16,000,000 c) -$17,000,000 d) -$23,500,000 e) -$24,500,000 17) Project cash flow (Cash Flow From Assets) for Year 1 is: a) $5,800,600 c) $7,800,231 d) $6,800,470 e) $9,817,500 18) Project cash flow (Cash Flow From Assets) for Year 3 is: a) $18,267,500 b) $10,826,250 c) $12,317,500 d) $13,800,000 e) $9,817,500 19) What is the Projects NPV? Should we take the Project? a) $2,437,500; yes b) $1,571,209; yes c) -$2,800,412; no d) -$3,800,605; no e) $1,634,678; yes

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