A corporate project requires an initial investment of $2 million today and is expected to generate after-tax cash flows of $750,000 at the end of year 1, $1,000,000 at the end of year 2, and $1,250,000 at the end of year 3. The project has a minimum required return of 9%.
a.) What is the intrinsic value of the project's estimated after-tax cash flows?
b.) What is the project's NPV?