(Related to Checkpoint 11.1) (Net present value calculation)Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of

$4,000,000

and would generate annual net cash inflows of

$1,200,000

per year for

7

years. Calculate the project's NPV using a discount rate of

5

percent.

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Part 1

If the discount rate is

5

percent, then the project's NPV is

$enter your response here.

(Round to the nearest dollar.)