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You are a major grocery chain (Fine Foods R Us) and are now contemplating starting a food truck supply service. You will prepare (pre-cook and

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You are a major grocery chain (Fine Foods R Us) and are now contemplating starting a food truck supply service. You will prepare (pre-cook and then freeze or chill) small plates' - like Tapas, which will then be sold to owners of food trucks. The start-up cost is $120 million. Your financial analysts calculate that the operation will produce free cash flow (FCFF) of $7 million the 1" year, and that this free cash flow will grow by 10% over the following 25 years (i.e., g=10% for t=2 through t-26). After that, free cash flow is expected to grow at a constant rate of 4% forever. Your WACC for this project is 8%. What is the project's NPV? USE TVM FORMULASI

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