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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.

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