Capital Investment, Advanced Manufacturing Environment

For discount factors use Exhibit $12$B$-1$ and Exhibit $12$B$-2.$ That gives a payback period of more than $11$ years. That's a long time to put the company's money at risk." Those savings are worth another million dollars per year."

"Another million will only cut the payback to about $9$ years," retorted Bill. "Ron, you're the marketing manager$-$do you have any insights?" benefits by another $$2\mathrm{.}4$ million."

"Wow! Now that's impressive," Bill exclaimed, nearly convinced. "The payback is now getting down to a reasonable level." after the $20$ years of service we expect to get, is $$5$ million. I think I had better see if this project can cover our $14\%$ cost of capital."

"Now wait a minute, Pamela," Bill demanded. "You know that I usually insist on a $20\%$ rate of return, especially for a project of this magnitude."

Required: negative NPV$.$ Enter your answers in whole dollars.