Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a temporary housing...

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Temporary Housing Services Incorporated (THSI) is considering aproject that involves setting up a temporary housing facility in anarea recently damaged by a hurricane. THSI will lease space in thisfacility to various agencies and groups providing relief servicesto the area. THSI estimates that this project will initially cost$5.64 million to setup and will generate $20 million in revenuesduring its first and only year in operation (paid in one year).Operating expenses are expected to total $12 million during thisyear and depreciation expense will be another $3 million. THSI willrequire no working capital for this investment. THSI's marginal taxrate is 35%. Assume that THSI's cost of capital is 13.9% p.a.Compute the NPV of the temporary housing facility to the nearestdollar. (Do not enter a dollar sign, just enter your answer as awhole number, either positive or negative)

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Temporary Housing Services Incorporated (THSI) is considering aproject that involves setting up a temporary housing facility in anarea recently damaged by a hurricane. THSI will lease space in thisfacility to various agencies and groups providing relief servicesto the area. THSI estimates that this project will initially cost$5.64 million to setup and will generate $20 million in revenuesduring its first and only year in operation (paid in one year).Operating expenses are expected to total $12 million during thisyear and depreciation expense will be another $3 million. THSI willrequire no working capital for this investment. THSI's marginal taxrate is 35%. Assume that THSI's cost of capital is 13.9% p.a.Compute the NPV of the temporary housing facility to the nearestdollar. (Do not enter a dollar sign, just enter your answer as awhole number, either positive or negative)