(20 Points) Vandelay Industries is considering the addition of a new financial calculator to its existing line of college supplies Question 6 (20PTS) The horizon of the project is estimated to be 2 years, with the following sales forecasts: Sales 1-50.9 million and Sales2=519 million. The project requires purchasing a machine that costs $1.8 million, and can be depreciated using the straight-line method down to zero book value over 4 years. Annual variable costs are estimated to be 20% of current year sales. The CFO believes that the machine can be sold at the end of the project, t2, for 50.9 million. Net working capital requirements are estimated to be as follows: zero immediately: 20% of current year sales at t=1; and zero at t 2, when NWC will be fully liquidated. The project will use existing office space for which the company paid $1,550,000 three years ago and could be rented out for $40,000 a year to be paid at the end of each year for the next two years. Vandalay's marginal corporate tax rate is 20%. The cost-of-debt of Vandalay Industries is currently at 5% per year, their bets of equity is 1.5, and their debt to equity ratio 0.25 The project will be financed using the same capital structure as the firm. Given their conservative debt levels, the debt can be assumed risk-free, while the market risk premium is estimated to be 6%. What is the NPV of the project? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place) Type your numeric answer and submit