We are examining a new project. We expect to sell 6,200 units per year at $76 net cash flow apiece for the next 10 years. In other words, the annual cash flow is projected to be $76 x 6,200 $471,200. The relevant discount rate is 18 percent, and the initial investment required is $1,730,000. a. What is the base-case NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ 387573 NPV b. After the first year, the project can be dismantled and sold for $1,600,000. If expected sales are revised based on the first year's performance, below what level of expected sales would it make sense to abandon the project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Level of expected sales Consider the following project of Hand Clapper, Inc. The company is considering a four- year project to manufacture clap-command garage door openers. This project requires an initial investment of $17 million that will be depreciated straight-line to zero over the project's life. An initial investment in net working capital of $1,100,000 is required to support spare parts inventory; this cost is fully recoverable whenever the project ends. The company believes it can generate $14.9 million in pretax revenues with $6.1 million in total pretax operating costs. The tax rate is 38 percent and the discount rate is 16 percent. The market value of the equipment over the life of the project is as follows: Market Value Year (millions) $ 15.00 12.00 2 3 9.50 4 2.85 a. Assuming the company operates this project for four years, what is the NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV b-1 Compute the project NPV assuming the project is abandoned after one year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV b-2Compute the project NPV assuming the project is abandoned after two years. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV b-3Compute the project NPV assuming the project is abandoned after three years. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 2$ NPV %24