Question: Microsoft is planning to introduce a new Xbox model next year. Microsoft estimates that the new model will generate the following cash flows (in millions):

Microsoft is planning to introduce a new Xbox model next year. Microsoft estimates that the new model will generate the following cash flows (in millions):
Year 0 Year 1 Year 2 Year 3 Year 4
-203 165 143 73 46
If Microsoft's WACC is 14%, what is the NPV of this project?

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