You are contemplating a partnership with Alibabathe e-commerce companyto get a stronger foothold in China. The project entails the following projections:

• An initial investment of $100 million.
• Revenue of $200 million in 2022, with 10% growth per year until 2026, and 3% per annum afterwards.
• Operating income margin of 4% in the first four years, and 5% per annum afterwards.
• Working capital / sales of 5% per year.
• No additional capital expenditures and no depreciation/amortization.

To determine the WACC, you are given the following information:

• Netflixs overall WACC is 8% (do NOT assume this can be derived from questions 10 to 14!)
• Netflixs WACC for merchandising in North America is 7%.
• Netflix estimates that any venture streaming or merchandising in Southeast Asia commands an incremental WACC of 4% over the same venture in North America.

Assuming no financing constraints, should you go forward with the project or not? Please justify your answer with numerical values.