7) Consider the following project: Initial outlay = $19 million Year 1 expected cash flow = $7 million Year 2 expected c

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7)
Consider the following project:
Initial outlay = $19 million
Year 1 expected cash flow = $7 million
Year 2 expected cash flow = $8 million
Year 3 expected cash flow = $10 million
Project cost of capital = 16.9%p.a.
The net present value of this project is closest to (in millions
to the nearest three decimals):
a.
$-0.898
b.
$-3.515
c.
$37.102
d.
$0.091