You are thinking about buying a printing press today that will print t shirts for many years including the celebration of a DePaul Women's Soccer National Championship The machine will cost $9mm to buy and $2mm to install today You will place the equipment in a building your uncle let you use rent free forever He paid $4mm for the building For working capital, assume that you must have an increase in accounts receivable of $4mm, an inventory increase of $3mm and an accounts payable increase of $1mm You will use the machine for regular printing jobs these jobs will produce $4 5mm of positive after tax cash flow per year (assume the cash flows start after one year and end after 15 total years) The victory will produce a special one time extra after tax cash flow of $4 97mm in 4 years from now because of the National Championship Your WACC is 14 Your tax rate is 30 At the end of 15 years, you shut down (and sell) the machine for $5mm and liquidate the working capital Assume the machine had been depreciated to a tax value of $2mm What is the NPV of the project Round to the nearest $mm no decimal places $45mm would be the form of a correct answer Hint you should come pretty close to a nice round number

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You are thinking about buying a printing press today that will print t-shirts for many years including the celebration of a DePaul Women's Soccer National

You are thinking about buying a printing press today that will print t-shirts for many years including the celebration of a DePaul Women's Soccer National Championship.

1. The machine will cost $9mm to buy and $2mm to install today. You will place the equipment in a building your uncle let you use rent free forever. He paid $4mm for the building.
2. For working capital, assume that you must have an increase in accounts receivable of $4mm, an inventory increase of $3mm and an accounts payable increase of $1mm. You will use the machine for regular printing jobs; these jobs will produce $4.5mm of positive after-tax cash flow per year (assume the cash flows start after one year and end after 15 total years).
3. The victory will produce a special one time extra after-tax cash flow of $4.97mm in 4 years from now because of the National Championship.
4. Your WACC is 14%. Your tax rate is 30%.
5. At the end of 15 years, you shut down (and sell) the machine for $5mm and liquidate the working capital. Assume the machine had been depreciated to a tax value of $2mm.

What is the NPV of the project? Round to the nearest $mm; no decimal places. $45mm would be the form of a correct answer. Hint...you should come pretty close to a nice round number.