Please provide clear answer with easily understandable intermediate steps. DO NOT use Excel! Here is the correct answer: NPV = 111289.

Company ABC was presented with two alternative projects, which implied the following incremental cash flows: Project 1: CapEx of 1M EUR at the end of each of the first two years and an annual Operational Cash Flow of 200,000 EUR starting at the end of year 3 , which will remain constant forever. Project 2: FCF of 100,000 EUR at the end of each of the first three years and a positive Free Cash Flow of 50,000 EUR from year 4 onwards, until the end of year 20. The company has a Debt-to-Equity ratio of 1 . The WACC of Company ABC is 9%. Assume M\&M conditions and that there are no taxes. Calculate the Net Present Value of project 1, assuming it is financed with 100% Equity