Problem #2: The company that you work for has a chance to invest in a 4-year manufacturing project that involves backpacks that turn into sleeping bags. The up-front investment is $1.8M and this entire amount can be capitalized onto the balance sheet. The asset has a six-year depreciable life and will be depreciated (using the straight-line method) over six years down to an end-of-life book value of zero. The net book value will be $0 at , but be careful about what it will be at , when your firm is ready to sell the project to an interested outside party. The anticipated selling price is $1.1M at . The backpack/sleeping-bag project is expected to provide cash sales of $9.2M per year, and will create cash expenses on the income statement of $6.1M each year. Also, at , your company will see its working capital will rise by $390K; at termination, working capital will fall by $390K. The relevant marginal tax rate is 20%. The appropriate discount rate is 8%. Your task is to construct a worksheet, that shows the relevant cash flows, as well as the calculations of the cash flows for all relevant points of time in your investment horizon. Then, you should calculate NPV. [THE FINAL ANSWER FOR NPV IS $7.24M.]