Question: Amazon is considering a new warehouse which will cost $130 million initially and another $90 million at the end of year 3. This project is

Amazon is considering a new warehouse which will cost $130 million initially and another $90 million at the end of year 3. This project is expected to produce incremental after-tax profits of $41 million, $42 million, $36 million, $52 million, $51 million, and $35 million to be received at the end of years 1, 2, 3, 4, 5 and 6 respectively. A) Draw a timeline. B) If the WACC is 6%, what is the projects NPV?

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