You are the CFO of a large company, and you must evaluate the following investment

opportunity. The project's initial capex is $100 million (no additional capex needed). Assume a

straight-line, 10 year depreciation schedule. Assume that the project will produce revenues of $30m,

$70m, $100m over the next 3 years. Operating expenses (excluding depreciation) will be 50% of

revenues. Net operating working capital will be 10% of revenue. Interest expense is 10% of revenue.

The firm's average tax rate is 20%, and the marginal tax rate is 30%. You expect to sell your PP&E at

the end of year 3 for $60 million. Assume all of the operating cash flows occur in the middle of the

year. Assume that you recoup your net operating working capital 6 months after the sale of your

PP&E, and the WACC is 15%. What is the NPV of this opportunity?