Consider the following project of Hand Clapper, Incorporated. The company is

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

This project requires an initial investment of $$12$ million that will be depreciated straight$-$

line to zero over the project's life. An initial investment in net working capital of

$$900,000$ is required to support spare parts inventory; this cost is fully recoverable

whenever the project ends. The company believes it can generate $$9\mathrm{.}1$ million in pretax

revenues with $$3\mathrm{.}7$ million in total pretax operating costs. The tax rate is $21$ percent and

the discount rate is $13$ percent. The market value of the equipment over the life of the

project is as follows:

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$.,1,234,567\mathrm{.}89.$

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

$($A negative answer should be indicated by a minus sign. Do not round

intermediate calculations and enter your answer in dollars, not

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