Victory MNC company plans to pursue a project in Italy that will generate revenue of 15 million Euro at the end of the n

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Victory MNC company plans to pursue a project in Italy
that will generate revenue of 15 million Euro at the end of the
next 3 years. It will have to pay operating expenses of 6 million
Euro per year. In addition, depreciation is expected to be 1
million Euro per year. The project can be sold for 60 million Euro
at the end of its life (net of any capital gain taxes). The Italian
government charges 25 percent tax rate on profits. The parent
company will finance the project which costs Euro 30 million if it
decides to undertake it. The company uses a discount rate of 12%
for projects with similar risk. The spot rate of the Euro is
currently $1.22 and is expected to depreciate by 5 percent each
year for the next three years.
Fill in the following blanks for the required variables
to find the NPV. Insert your answers in MILLION. For example, for
1.5 million, insert 1.5. Round your answers to 2 decimal
places.
Year
0
1
2
3
Cash flow in Dollar ($)
PV of cash flow
NPV =
Should you accept the project? (YES/NO)