You work for a computer company, which is planning to expand into Texas. The CFO has asked you to do an analysis of the expected return on two new warehouses and equipment required for the expansion. The new warehouses would be able to produce a higher volume of products at a faster pace. The project would require an initial investment of $40 million with an add-on investment of $11 million at the end of Year 2. The expected after-tax returns for the next 5 years are: $9 million, $10 million, $16 million, $18 million, and $17 million respectively. You assume the projects returns are received at the end of each year and have determined the WACC is 8%.

1. Draw a timeline.

2. What is the NPV for this project?

3. Calculate the FV of Returns to the end of the 5-year projection period.

4. Calculate the projects MIRR? (Your answer should be a % carried to 2 places.) 5. Should the project be done? (Yes or No)