The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be $1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. The federal tax rate is 21% (ignore any possible state corporate taxes). Berndt has no debt.

Suppose the values for this problem change to:

Sales: 13.6 million

Costs: 78.8% of sales

Depreciation: 1.2 million

Income Tax Rate: 16%

What is net income in millions? Round your solution to three decimals.