Consider the following project of Hand Clapper, Inc. The company is considering a four-year project to manufacture clap-command garage door openers. This project requires an initial investment of $15.2 million that will be depreciated straight-line to zero over the projects life. An initial investment in net working capital of $620,000 is required to support spare parts inventory; this cost is fully recoverable whenever the project ends. The company believes it can generate $12.7 million in pretax revenues with $5 million in total pretax operating costs. The tax rate is 22 percent and the discount rate is 9 percent. The market value of the equipment over the life of the project is as follows:

Year. Market Value (millions)

1. $12.2

2. 9.9

3. 5.3

4. 1.4

a. Assuming the company operates this project for four years, what is the NPV? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89.) b-1. Compute the project NPV assuming the project is abandoned after one year. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89.) b-2. Compute the project NPV assuming the project is abandoned after two years. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89.) b-3. Compute the project NPV assuming the project is abandoned after three years. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89.)

If you don't answer all of the portions do not expect a thumbs up, I have a record for giving them out upon full completion.