Better Mousetraps has developed a new trap. It can go into production for an initial

investment in equipment of $$5\mathrm{.}4$ million. The equipment will be depreciated straight$-$

line over $6$ years, but it can be sold after $6$ years for $$606,000.$ The firm believes that

working capital at each date must be maintained at a level of $10\%$ of next year's forecast

sales. The firm estimates production costs equal to $$1\mathrm{.}70$ per trap and believes that the

traps can be sold for $$7$ each. Sales forecasts are given in the following table. The

project will come to an end in $6$ years when the trap becomes technologically obsolete.

The firm's tax bracket is $40\%,$ and the required rate of return on the project is $12\%.$

Suppose the firm can cut its requirements for working capital in half by using better

inventory control systems. By how much will this increase project NPV$?$