Caterpillar Inc $($CAT$)$ is considering an investment in equipment that will help produce more efficient bulldozers to sell to their client construction firms. Here are the particulars of the project:

Initial investment at time t$=0$ is $$12,000,000$

Life of project is $12$ years

Initial investment depreciated to $$0$ via straight$-$line over entire life

NWC investment required $=$ $$0\mathrm{.}00$

Expected market salvage value of investment assets $=$ $$1,200,000$

Starting $1-$year from today, and remaining constant over project life:

Incremental expected sales $=$ $$4,150,000$ per year

Incremental expected expenses $=$ $$1,600,000$ per year

required return on investment $=15\%$

tax rate $=32\%$

A$.$What is the NPV of this investment?

B$.$By what percent would incremental sales have to increase or decrease relative to the expected amount for this investment to break$-$even $($result in NPV$=0)?$