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Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $ 3 . 9 4 million.
Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $ million. The marketing department predicts that sales related to the project will be $ million per year for the next four years, after which the market will cease to exist. The machine will be depreciated down to zero over its fouryear economic life using the straightline method. Cost of goods sold and operating expenses related to the project are predicted to be percent of sales. The company also needs to add net working capital of $ immediately. The additional net working capital will be recovered in full at the end of the projects life. The corporate tax rate is percent. The required rate of return is percent.
What is the NPV for this project? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to decimal places, eg
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