Medavoy Company is considering a new project that complements its existing business. The machine required for the project costs $$4\mathrm{.}7$ million. The marketing department predicts that sales related to the project will be $$2\mathrm{.}83$ million per year for the next four years, after which the market will cease to exist. The machine will be depreciated to zero over its $4-$year economic life using the straight$-$line method. Cost of goods sold and operating expenses related to the project are predicted to be $30$ percent of sales. The company also needs to add net working capital of $$210,000$ immediately. The additional net working capital will be recovered in full at the end of the project$$s life. The corporate tax rate is $22$ percent and the required return for the project is $13$ percent. What is the value of the NPV for this project? $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$Problem $6-11$ Calculating NPV

Medavoy Company is considering a new project that complements its existing business.

The machine required for the project costs $$4\mathrm{.}7$ million. The marketing department

predicts that sales related to the project will be $$2\mathrm{.}83$ million per year for the next four

years, after which the market will cease to exist. The machine will be depreciated to zero

over its $4-$year economic life using the straight$-$line method. Cost of goods sold and

operating expenses related to the project are predicted to be $30$ percent of sales. The

company also needs to add net working capital of $$210,000$ immediately. The additional

net working capital will be recovered in full at the end of the project's life. The corporate

tax rate is $22$ percent and the required return for the project is $13$ percent. What is the

value of the NPV for this project? $($Do not round intermediate calculations and enter

your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,$

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

NPV