Question: Can you help to solve below two questions? Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up

Can you help to solve below two questions?

Can you help to solve below two questions? Applied Nanotech is thinking

Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that Applied Nanotech can sell 14 units per year at $302,000 net cash flow per unit for the next four years. The engineering department has come up with the estimate that developing the machine will take a $13.5 million initial investment. The finance department has estimated that a discount rate of 10 percent should be used. a. What is the base-case NPV? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Base-case NPV b. If unsuccessful, after the first year the project can be dismantled and will have an aftertax salvage value of $10.7 million. Also, after the first year, expected cash flows will be revised up to 19 units per year or to 0 units, with equal probability. What is the revised NPV? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Revised NPV $

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