52.3
3. Your firm is considering a project with the following cash
flows: an immediate investment of $150 million, cash inflows of
$60 million per year for 10 years (starting next year), and a
shut-down expense of $30 million in year 10. Your discount rate
for this project is 10% (per year) Give and justify your
recommendation for whether your firm should take this project. (2
pts)