You have been asked to assess whether it makes sense for GeoTech Inc. to invest in a new telecomm investment. The initial investment is expected to be $ 60 million and the project is expected to generate income for the next 10 years, with the information below providing a measure of revenues and expenses (each year):

Revenue 28

Operating Expenses 12

Depreciation 5

Allocated G&A 4

The corporate tax rate is 40%. The cost of capital for GeoTech is 12%. The working capital requirements are estimated to be 10% revenues and to be made at the beginning of the period. 75% of the allocated G&A expenses are non-incremental.

Estimate the free cash flow year 0. (write your number with a negative sign)

Estimate the free cash flow for the years 1-9.

Estimate the free cash flow for the year 10.

What is the NPV of the project?