Question $23$

$7$ pts

Dragon Flights is planning to purchase a new dragon. The capital investment will cost them $$5$ million, and is expected to produce the cash flows of $$1\mathrm{.}5$ million first year of operations. After the first year the cash flows will increase by $4\%$ every year. Dragons are operational for $6$ years:

What is the NPV for this new investment if the cost of capital is $13\%?$