a. You have analyzed a project and estimated the expected cashflows as follows: $ 160 million for the next 3 years and $ 190 million for the following 3 years. The initial investment in the project is $ 918 million, and the cost of capital is 10% for the first three years and increases to 12% for the last 3 years. Estimate the net present value of this project. b. (Note: This part is not related to part a) You have reviewing the net present value calculation prepared by Michael on a project with cost of capital of 14%. You notice following three mistakes. Did Michael under- or over-estimate NPV and by how much? Show detailed work. . Only the equity portion ($260 million) of the initial investment of $ 300 million has been included in the investment analysis. The after-tax operating income of $ 90 million, each year for 6 years, has been used as the cash flow. The depreciation charges each year were $ 5 million. The analyst failed to consider the expected salvage value of $ 20 million