A wine lover has decided to start a winery. The initialinvestment will be $5 million on Day 1. The winery will require anadditional $1 million dollars investment at very beginning Year 1.The vines will mature over five years. Beginning at the end of year6, the winery is expected to produce net cash inflows of $2million, 4 mil in year 7, 6 mil in year 8, 8 mil in year 9 and 10mil in year 10. What is the NPV, IRR, and Payback (non- discountedand discounted) assuming a discount rate of 15 percent?
