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Your consulting firm has been hired to evaluate a manufacturing process. In order to value the process, youve decided to value each piece separately (including

Your consulting firm has been hired to evaluate a manufacturing process. In order to value the process, youve decided to value each piece separately (including inventory/cash management). The process requires an initial amount of NWC of $500k. Each year, NWC will grow by $100k. The process will be in operation for 10 year before shutting down (and freeing up the NWC). If the firms discount rate is 6%, what is the effect of the projects NWC on the total NPV of the project (i.e., what is the NPV of the NWC)? Please list the formula involved in solving this question.

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