Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $57 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 $671000. 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 $180 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 35% and the required rate of return on the project is 8%. Use the MACRS depreciation schedule. 9 Thereafter 0.6 0.7 0.7 0.5 0.3 O Year: Sales (millions of trapa) 23 5 1 0.4 a. What is project NPV? (Do not round intermediate calculations, Enter your answer in millions rounded to 4 decimal places.) NPV million b. By how much would NPV increase of the firm depreciated its investment using the 5-year MACRS schedule? (Do not round Intermediate calculations. Enter your answer in whole dollars not in millions.) The NPV increases by