Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.0 million. The equipment will be depreciated straight-line over 6 years to a value of zero, but in fact it can be sold after 6 years for $530,000. The firm believes that working capital at each date must be maintained at a level of 15% of next years forecast sales. The firm estimates production costs equal to $1.90 per trap and believes that the traps can be sold for $6 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 firms tax bracket is 35%, and the required rate of return on the project is 9%. Use the MACRS depreciation schedule.

Year: 0 1 2 3 4 5 6

Thereafter Sales (millions of traps) 0 0.4 0.5 0.6 0.6 0.8 0.4 0 a.

What is project NPV? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.

By how much would NPV increase if the firm uses double-declining-balance depreciated with a later switch to straight-line when remaining project life is only two years? Note: Do not round intermediate calculations. Enter your answer in whole dollars not in millions.