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

The machine required for the project costs $$5\mathrm{.}0$ million. The marketing department

predicts that sales related to the project will be $$3\mathrm{.}07$ 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 $$240,000$ immediately. The additional

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

tax rate is $23$ percent and the required return for the project is $11$ 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

Should the company proceed with the project?

Yes

No