b. what is the project cash flow from year 3?

c. what is the NPV?

d. what is the IRR?

The Umbrella Corporation is considering expanding one of its production facilities to research a new type of virus, which will hopefully prevent another zombie outbreak. The project would require a $21,000,000 capital investment and will be depreciated (straight-line to zero) over its 3 year life. The company expect an incremental sales of $16,500,000. The sum of costs of goods sold and other operating expenses are equal to 40% of the total sales. The company would also need to commit an initial working capital of $3,000,000 to this project. The company has a 35% tax rate and requires a 12.5% rate of return for projects at this risk level. What is the project cash flow for Year 2