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Applied nanotechnology is thinking about introducing new surface cleaning machine the engineering department has come up with the estimate that developing the machine will take

Applied nanotechnology is thinking about introducing new surface cleaning machine the engineering department has come up with the estimate that developing the machine will take a 14.9 million initial investment. The marketing department has to come up with estimate that applied nanotech can sell 15 units per year at 303000 after tax cash flow per unit year 1. If unsuccessful after first year project can be dismantled and will have an after tax salvage value of 10.8 million. Also after first year expected cash flow will be revised up to 20 units per year for additional 4 years or to 0 units if dismantled. What is npv of project based on 16 % discount rate

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