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You are the financial manager of Logistics Inc and you consider buying new trucks to expand your business. The trucks require an initial outlays of

You are the financial manager of Logistics Inc and you consider buying new trucks to expand your business. The trucks require an initial outlays of $4 million and you expect that they will generate cash flows of $2 million at the end of each year over the next 10 years. The company has a market value of equity of $70M, a market value of debt of $30M, an equity beta of 1.4 and debt holders require 6% per year. The risk-free rate is 3% and market risk premium is 7%. The tax rate is 21%. What is the NPV of this new truck project? Answer in millions of dollars with 2 decimals (for example, if your answer is 1,000,000 enter 1.00).

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