Wally & Co. Ltd. is thinking about a proposal for a joint venture that will rec re an investment of $13 million. At the end of the fifth year, Wally's joint venture partner will buy out Wally's...

Extracted text: Wally & Co. Ltd. is thinking about a proposal for a joint venture that will rec re an investment of $13 million. At the end of the fifth year, Wally's joint venture partner will buy out Wally's interest for $10 million. Wally's CFO has estimated that the appropriate discount rate for this proposal is 12 percent. The expected cash flows are given below. Cash Flow ($) |-13,000,000 3,000,000 3,000,000 3,000,000 3,000,000 10,000,000 Year 0. 1 4. a) Calculate this proposal's NPV. b) Should Wally undertake this joint venture?