Victory MNC company plans to pursue a project in Italy that will generate revenue of 15 million Euro at the end of the next 3 years. It will have to pay operating expenses of 7 million Euro per year. In addition, depreciation is expected to be 1 million Euro per year. The project can be sold for 50 million Euro at the end of its life (net of any capital gain taxes). The Italian government charges 30 percent tax rate on profits. The parent company will finance the project which costs Euro 55 million if it decides to undertake it. The company uses a discount rate of 15% for projects with similar risk. The spot rate of the Euro is currently $1.22 and is expected to depreciate by 5 percent each year for the next three years.

Fill in the following blanks for the required variables to find the NPV. Insert your answers in MILLION. For example, for 1.5 million, insert 1.5. Round your answers to 2 decimal places.

Year 0 1 2 3 Cash flow in Dollar ($)

PV of cash flow NPV =

Should you accept the project? (YES/NO)