StrataCorp is a company that is a leader in statistical software industry. StrataCorp has only one product: Strata. StrataCorps current sales is $10 million, and it expects the sales to stay the same. StrataCorp is now considering launching a new product Manta, which is a more advanced statistical software. The company has already spent $1 million to hire Dutch Consulting Group to perform a detailed business analysis. Dutch Consulting Group found out the following facts:

If StrataCorp decides to launch Manta, it will need to pay $1 million royalty fees each year for the next three years (year 1, 2, and 3). Royalty fees are not included in either COGS or SG&A.

StrataCorp will be able to sell Manta for the next three years. The revenue of Manta is estimated to be $8 million each year. Production and sales of Manta will end after that.

The production cost (including both COGS and SG&A) of Manta is expected to be 25% of its sales, while the production cost (including both COGS and SG&A) of the Strata is 20% of its sales. Introduction of Manta will reduce the sales of Strata by 25% in each of the three years when Manta is on the market.

In order to produce Manta, StrataCorp needs to invest $8 million in supercomputers now (i.e., in Year 0). These supercomputers can be only used for the Manta project and their value will be depreciated to zero using 4-year straight line depreciation schedule.

StrataCorps level of net working capital has always been maintained at a constant level, which is $1 million. The Manta project will require the net working capital to be $3 million, $2 million, and $1 million in year 1, 2 and 3, respectively. The level of net working capital will be $1 million after year 3.

Corporate tax rate is 35%, and the project's cost of capital is 10%.

a. What is the net present value (NPV) of Manta project? The NPV of this project will be $ million. (Round to three decimal places.)