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 $14.4 million that will be depreciated straight-line to zero over the projects life. An initial investment in net working capital of $600,000 is required to support spare parts inventory; this cost is fully recoverable whenever the project ends. The company believes it can generate $11.9 million in pretax revenues with $4.6 million in total pretax operating costs. The tax rate is 23 percent and the discount rate is 9 percent. The market value of the equipment over the life of the project is as follows