Consider the following project for Hand Clapper, Incorporated. The company is considering a $4-$year project to manufacture clap$-$command garage door openers. This project requires an initial investment of $$15\mathrm{.}5$ million that will be depreciated straight$-$line to zero over the project$$s life. An initial investment in net working capital of $$950,000$ is required to support spare parts inventory; this cost is fully recoverable whenever the project ends. The company believes it can generate $$11\mathrm{.}9$ million in pretax revenues with $$4\mathrm{.}6$ million in pretax operating costs. The tax rate is $25$ percent and the discount rate is $15$ percent. The market value of the equipment over the life of the project is as follows: Consider the following project for Hand Clapper, Incorporated. The company is

considering a $4-$year project to manufacture clap$-$command garage door openers. This

project requires an initial investment of $$15\mathrm{.}5$ million that will be depreciated straight$-$line

to zero over the project's life. An initial investment in net working capital of $$950,000$ is

required to support spare parts inventory; this cost is fully recoverable whenever the

project ends. The company believes it can generate $$11\mathrm{.}9$ million in pretax revenues with

$$4\mathrm{.}6$ million in pretax operating costs. The tax rate is $25$ percent and the discount rate is

$15$ percent. The market value of the equipment over the life of the project is as follows:

a$.$ Assuming Hand Clapper operates this project for four years, what is the NPV$?($Do

not round intermediate calculations and enter your answer in dollars, not millions

of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$-1.$ Compute the project NPV assuming the project is abandoned after only one year.

$($Do not round intermediate calculations and enter your answer in dollars, not

millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$-2.$ Compute the project NPV assuming the project is abandoned after only two years.

$($Do not round intermediate calculations and enter your answer in dollars, not

millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$-3.$ Compute the project NPV assuming the project is abandoned after only three years.

$($Do not round intermediate calculations and enter your answer in dollars, not

millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

Year Market Value $($in millions$)$

$1$ $ $13\mathrm{.}50$

$210\mathrm{.}50$

$38\mathrm{.}00$

$41\mathrm{.}35$

a$.$

Assuming Hand Clapper operates this project for four years, what is the NPV$?($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$-1.$

Compute the project NPV assuming the project is abandoned after only one year. $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$-2.$

Compute the project NPV assuming the project is abandoned after only two years. $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$-3.$

Compute the project NPV assuming the project is abandoned after only three years. $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$