Imagine you are a financial advisor for Google LLC. Google is contemplating investing in a new manufacturing facility for its hardware products. Assess the financial viability of this investment by conducting a cost-benefit analysis. Consider the initial investment required, expected cash flows over the investment's lifespan, depreciation expenses, and the project's net present value (NPV). Provide recommendations based on your analysis.
Values:
•Initial Investment: $10,000,000
•Expected Annual Cash Inflows: $2,000,000
•Depreciation Expense per Year: $1,000,000
•Project Lifespan: 5 years
•Discount Rate: 10%