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Year: 0 1 2 3 4 5 6 Thereafter Sales (millions of traps) 0.4 0.5 0.6 0.6 0.8 0.4 0 a. What is project
Year: 0 1 2 3 4 5 6 Thereafter Sales (millions of traps) 0.4 0.5 0.6 0.6 0.8 0.4 0 a. What is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.) NPV million b. By how much would NPV increase if the firm depreciated its investment using the 5-year MACRS schedule? (Do not round intermediate calculations. Enter your answer in whole dollars not in millions.) The NPV increases by Year: 0 1 2 3 4 5 6 Thereafter Sales (millions of traps) 0 0.5 0.7 0.9 0.9 0.6 0.4 Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much will this increase project NPV? (Do not round your intermediate calculations. Enter your answer in millions rounded to 4 decimal places.) Change in NPV million
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