Your job: Determine whether HP should produce a high-end smartphone.The project lasts 6 years.

Investments : $30 million in year 0 for machinery. Assume straight-line depreciation over 6 years

Machinery will be sold for $2.5 million at the projects end

NWC of $3 million to begin the project, which will increase at a 4% rate each year

Revenue and cost estimates

$50 million in year 1, growing at 10% yearly after

Annual operating costs of (a) $30 million fixed, and (b) variable costs of 30% of annual revenues

Tax rate = 30%, Discount rate = 12%

Solve for PVF@12% and NPV please show all formulas

PLEASE DO NOT PULL ANSWERS FROM OTHER CHEGG USERS AS THEY ARE WRONG. PLEASE SHOW ALL FORMULAS Thank you!