SunBeam Inc. has spent $3.0 million developing a new product. It is now considering whether to build a plant in Brazil to manufacture this product. The current date is 12/31/03. The plant requires an investment of $12 million to be paid now. It will take one year to build. The plant will start producing on 1/1/05 and the first revenues and costs will be received and paid on 12/31/05. The plant is expected to produce for three years. It will produce 4 million units a year. In the first year of its operation, the company expects to sell each unit for $6 while the cost of the raw materials will be $3 per unit. In subsequent years, both the price per unit and the raw material cost per unit will increase at the rate of inflation, which is expected to be 3%. The total labor costs for the first year of production will be $2 million (i.e. on 12/31/05) and these are expected to grow at a rate of 4% per year. The land the plant will be built on could be rented out for $700,000 a year with the rent being paid each year at the beginning of the year. The plant will be depreciated to a book value of $3 million on a straight-line basis (hence the annual depreciation for the plant is $3 million a year over the three years it is in production). However, the company expects that at the end of the project's life, it will be able to sell the plant for $2 million. The firm already owns some of the machines that it will use for this new project. These machines cost $2 million ten years ago. The $12 million cost of the plant mentioned initially does not include the cost of these machines. These machines are currently fully depreciated and have a current market value of $0.8 million (i.e. on 12/31/03). These machines will have no salvage value at the end of the project's life (i.e. on 12/31/07). The project requires an initial investment in working capital of $1.5 million on 12/31/04. Thereafter, SunBeam would require 10 cents of net working capital to support each dollar of sales. This buildup would have to be made by the beginning of sales year in question (or equivalently, by the end of the previous year). At the end of the project's life, the net working capital investments revert back to the firm. All figures are in nominal terms and are stated in before-tax terms unless otherwise indicated. The firm has a tax rate of 40%. It has profitable ongoing operations and an opportunity cost of capital (i.e. the discount rate) for this type of project of 10.8%. What is the NPV of the plant? Please input your response in millions rounded to two decimal points. SunBeam Inc. has spent $3.0 million developing a new product. It is now considering whether to build a plant in Brazil to manufacture this product. The current date is 12/31/03. The plant requires an investment of $12 million to be paid now. It will take one year to build. The plant will start producing on 1/1/05 and the first revenues and costs will be received and paid on 12/31/05. The plant is expected to produce for three years. It will produce 4 million units a year. In the first year of its operation, the company expects to sell each unit for $6 while the cost of the raw materials will be $3 per unit. In subsequent years, both the price per unit and the raw material cost per unit will increase at the rate of inflation, which is expected to be 3%. The total labor costs for the first year of production will be $2 million (i.e. on 12/31/05) and these are expected to grow at a rate of 4% per year. The land the plant will be built on could be rented out for $700,000 a year with the rent being paid each year at the beginning of the year. The plant will be depreciated to a book value of $3 million on a straight-line basis (hence the annual depreciation for the plant is $3 million a year over the three years it is in production). However, the company expects that at the end of the project's life, it will be able to sell the plant for $2 million. The firm already owns some of the machines that it will use for this new project. These machines cost $2 million ten years ago. The $12 million cost of the plant mentioned initially does not include the cost of these machines. These machines are currently fully depreciated and have a current market value of $0.8 million (i.e. on 12/31/03). These machines will have no salvage value at the end of the project's life (i.e. on 12/31/07). The project requires an initial investment in working capital of $1.5 million on 12/31/04. Thereafter, SunBeam would require 10 cents of net working capital to support each dollar of sales. This buildup would have to be made by the beginning of sales year in question (or equivalently, by the end of the previous year). At the end of the project's life, the net working capital investments revert back to the firm. All figures are in nominal terms and are stated in before-tax terms unless otherwise indicated. The firm has a tax rate of 40%. It has profitable ongoing operations and an opportunity cost of capital (i.e. the discount rate) for this type of project of 10.8%. What is the NPV of the plant? Please input your response in millions rounded to two decimal points