BH Holding Inc. is considering undertaking a capital project, costing $8 million today. in addition, the project will be installed over the next 2 years, costing $1.0 million at the end of the first year and $0.5 million at the end of the second year. thereafter, the project is expected to generate $1.5 million per annum from year 3 to year 12. at the end of year 12 from today, the project is expected to have the resale value of $3 million. assume that the project's cost of capital is 8% per annum. calculate the NPV of the project.
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