Question: please help, my answer is 0.9267 is it right? Better Mousetraps has developed a new trap. It can go into production for an initlal investment

 please help, my answer is 0.9267 is it right? Better Mousetraps

please help, my answer is 0.9267 is it right?

Better Mousetraps has developed a new trap. It can go into production for an initlal investment in equipment of $6 million. The equipment will be depreclated stralght-line over 5 years to a value of zero, but in fact it can be sold after 5 years for $500,000. The firm belleves that working capital at each date must be maintained at a level of 10% of next year's forecast sales. The firm estlmates production costs equal to $1.50 per trap and belleves that the traps can be sold for $4 each. Sales forecasts are given in the following table. The project will come to an end in 5 years, when the trap becomes technologically obsolete. The firm's tax bracket is 35%, and the required rate of return on the project is 12% What is project NPV? (Round your answer to 4 decimal places. Enter your answer in millions of dollars. Use the minus slgn for negative value.)

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