A factory is considering a new expansion plan, which requires an initial investment of $ 100 million, it will last 5 years and is depreciated straight-line to a book value of O. Salvage value of the new machinery at t=5 is $10 million. The project generates revenue of $50 million each of the 5 years and costs amount to 30% of revenues. At year 1, Inventory will rise by $2 million, and A/R will rise by $1 million. All working capital components return to original values at the end of the project's life.

Firm tax rate is 40% and the WACC is 4%.

Input the numbers in millions.

1) what is thr change in working capital in year 5

2) what is the project FCFF in year 1

3) what is the project NPV