You own a warehouse company, which provides logistics services to online retailers. You are considering overhauling an existing packaging line in one of your warehouses. The new robotic technology you consider costs $-25 million in Year 0 and has a useful life of 4 years. You estimate that increased efficiency and throughput will generate incremental revenue of $25 million in Year 1, Year 2, Year 3, and Year 4. Operating expenses (without depreciation) for the warehouse are 70% of the total revenue each year. Assume that the new equipment will be depreciated using a straight-line method over 4 years. The appropriate cost of capital is 9% and the tax rate is 25%.

Your goal is to make a decision on whether to proceed with the overhaul of the existing line.

(a) What is the annual depreciation expense associated with the new robotic line if you choose to install it? (enter a positive number) million

(b) What is the after-tax cash flow in Year 0? million

(c) What is the after-tax cash flow in Year 1? million

(d) What is the after-tax cash flow in Year 2? million

(e) What is the after-tax cash flow in Year 3? million

(f) What is the after-tax cash flow in Year 4? million

(g) What is the NPV of the project? million