23.Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12% to evaluate this project. Based on extensive research it has prepared the following incremental free cash flow projections (in millions of dollars):Year 0Years 19Year 10Revenues Manufacturing expenses (other than depreciation) Marketing expenses Depreciation100.035.010.015.0100.035.010.015.0= EBIT Taxes (35%)40.014.040.014.0= Unlevered net income+ Depreciation Increases in net working capital Capital expenditures+ Continuation value150.026.0+15.05.026.0+15.05.0+12.0= Free cash flow150.036.048.0a. For this base-case scenario what is the NPV of the plant to manufacture lightweight trucks?
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