A company is weighing moving a division from San Francisco to Los Angeles. The company owns property it purchased in Los Angeles for $4.1M and which is currently valued at $6.8M. Developing the property will cost $5.3M. Operating in LA will be cheaper than operating in San Francisco and is expected to save the company $1.2M per year forever. Moving the division to LA will allow the company to hire additional people in San Francisco and enhance the profitability of the San Francisco operations by $0.2 per year forever. The discount rate is 8.1%. What is the NPV of the proposal? Give your answer to the nearest $0.1M.

ANSWER: 5.2