an initial investment in Better Mousetraps has developed a new trap. It can go into equipment of $6 million. The equipment will be depreciated straight linelover 6 years to a value of zero, but in fact it can be sold after 6 years for $500,000 The firm believes that working capital at each date The firm estimates production costs must be maintained at a level of 10% of next years forecast sales equal to $1.50 per trap and believes that the traps can be sold for $4 each. Sales forecasts are given in the folowing table. The project will come to an end in 6 years, when the trap becomes technologically obsolete The firm's tax bracket is 35%. The company's debt to equity ratio is 40% and the company's bonds currently sell for S950, pay a coupon of 5% annually, and have 6 years until maturity. The market return on securities is currently 12% and the current risk-free rate is 3%. The company's beta is 1 2. Year 0 1 2 3 4 5 6 Thereafter Sales (millions of traps) 0 5 6 1.0 1.0 6 2 a. What is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.) NPV million 2 34 lo TEXAS INSTRUM