Dell is considering a new project that requires an investment of $24 million in machinery. This is expected to produce sales of $70 million per year for 3 years. Operating expenses are 80% of sales. The machinery will be fully depreciated to a zero-book value over 3 years using straight-line depreciation. There is no salvage value. There is an initial investment of $3 million in net operating working capital. At the end of year 3, the firm gets $2 million returned in net operating working capital. There is no other investment in net operating working capital. The tax rate is 40%. The unlevered cost of capital is 11%. a. Calculate the base-case NPV (net present value). b. The project will be financed with $10,000,000 in bonds; the remaining funds will come from retained earnings. The bonds have a 3-year life, an annual coupon rate of 6% and a yield of 6%. Find the adjusted present value (APV).