Question: Answer A and B with written process please Adidas has been offered a contract by LA Galaxy Athletics to produce new gear for all student-

Answer A and B with written process please

Adidas has been offered a contract by LA Galaxy Athletics to produce new gear for all student- athletes. The contract would last for four years and Adidas's cash flows from the contract would be $3.2 million per year. Adidas's upfront setup costs to be ready to produce all the new gear would be $8.0 million. Their discount rate would be 6.0%. I a) What is the NPV of the cash flow for this project? b) What is the NPV of the cash flow for this project

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