Chung Electronics is considering a new project that complements its existing business. The machine required for the project costsChung Electronics is considering a new project that complements its existing business. The machine required for the project costs

$$3\mathrm{.}96$ million. The marketing department predicts that sales related to the project will be $$2\mathrm{.}66$ million per year for the next four years,

after which the market will cease to exist. The machine will be depreciated down to zero over its four$-$year economic life using the

straight$-$line method. Cost of goods sold and operating expenses related to the project are predicted to be $25$ percent of sales. The

company also needs to add net working capital of $$310,000$ immediately. The additional net working capital will be recovered in full at

the end of the project's life. The corporate tax rate is $21$ percent. The required rate of return is $16$ percent. What is the NPV for this

project?

Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal

places, e$.$g$.,1,234,567\mathrm{.}89.$

NPV

$$3\mathrm{.}93$ million. The marketing department predicts that sales related to the project will be $$2\mathrm{.}63$ million per year for the next four years,

after which the market will cease to exist. The machine will be depreciated down to zero over its four$-$year economic life using the

straight$-$line method. Cost of goods sold and operating expenses related to the project are predicted to be $30$ percent of sales. The

company also needs to add net working capital of $$280,000$ immediately. The additional net working capital will be recovered in full at

the end of the project's life. The corporate tax rate is $23$ percent. The required rate of return is $13$ percent. What is the NPV for this

project?

Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal

places, e$.$g$.,1,234,567\mathrm{.}89.$

Answer is complete but not entirely correct.