Your company weighted average cost of capital (the discount rate) is 5%. The initial investment is $11 million, and the project will last for five years, with the estimated cash flows per year as shown in the table below.

Based on the above table,

a) calculate the Net Present Value (NPV)

b) Based on value in (a), is it a worth investment?

c) Recalculate the NPV if the project had cost 14 million.

d) Based on value in (c), is it a worth investment?

\begin{tabular}{|l|r|r|} \hline & \multicolumn{1}{|c|}{ Cash Flow } & Discounted Cashflow @ 5\% to nearest \\ \hline Year 1 & 1,000,000 & 952,381 \\ \hline Year 2 & 1,000,000 & 907,029 \\ \hline Year 3 & 4,000,000 & 3,455,350 \\ \hline Year 4 & 4,000,000 & 3,290,810 \\ \hline Year 5 & 6,000,000 & 4,701,157 \\ \hline \end{tabular}