Question: opening a new 5 year project. The project will require investments in property, plant, and equipment totalling $75 million and an initial investment in

opening a new 5 year project. The project will require investments in

opening a new 5 year project. The project will require investments in property, plant, and equipment totalling $75 million and an initial investment in net working capital of $20 million. The operating cash flows are expected to be $15 million the first year and are expected to increase by $5 million in each of the four remaining years. At the end of the project, they will recover the net working capital, and they expect to sell their equipment, producing an after tax cash flow of $15 million. Based on the riskiness of the project, they require a return of 17.5%. What is the NPV of this project? $(5,130,287) $(5,344,049) $(5,504,371) $(4,916,526) $(5,611,252)

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