Your firm is considering an overseas expansion. Below is the information that you have been given regarding the project:

Initial Equipment Cost: $100m.

Life of System: 5 years.

Depreciation method: Straight line Depreciation.

Expected overseas sales: $110m per year.

Raw materials: $70m per year.

Salaries for new workers: $20m per year.

Net Working Capital necessary for plant to operate effectively: $25m (assume that this investment is required at the start of the project and is recovered when the plant shuts down after 5 years.)

Marginal Tax Rate on income and capital gains: 40%

Expected salvage value of equipment after 5 years: $30m.

What will be the cash flows of this project in millions?

		-125/20.0/20.0/20.0/20.0/63
		-125/32/32/32/32/75
		-125/26.5/26.5/26.5/26.5/81.5
		-125/26.5/26.5/26.5/26.5/71
		-100/26.5/26.5/26.5/26.5/81.5

You are presented a proposal for a project. The project costs $10 million and will produce after-tax cash flows of $2 million at the end of year 1, $4 million at the end of year 2, and $8 million at the end of year 3. What is the NPV of this project if your WACC is 15%?