Problem 7-24 Expansion Decisions Herjavec Enterprises is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that the company can sell 20 units per year at $195,000 net cash flow per unit for the next five years. The engineering department has come up with the estimate that developing the machine will take a \$14.5 million initial investment. The finance department has estimated that a discount rate of 11 percent should be used. a. What is the base-case NPV? ( A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) b. If unsuccessful, after the first year, the project can be dismantled and will have an aftertax salvage value of $10.4 million. Also, after the first year, expected cash flows will be revised up to 30 units per year or down to 0 units with equal probability. What is the revised NPV? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Answer is complete but not entirely correct