om/flowlconnect.html Help Save & B Better Mousetraps has developed a new trap It can go into production for an initial investment in equipment of $5.7 million The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years for $638,000. The firm believes that working capital at each date must be maintained at a level of 15% of next year's forecast sales The firm estimates production costs equal to $1.70 per trap and believes that the traps can be sold for $8 each. Sales forecasts are given in the following table The project will come to an end in 6 years, w hen the trap becomes technologically obsolete. The firm's tax bracket is 35% and the required rate of return on the project is 0% Use the MACRSdepeationschedule Sales (millions of traps) .5 0.6 0.8 8.8 8.6 4 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) b. By how much would NPV increase it the firm depreciated ts investment using the S-year MACRS schedule? (Do not round intermediate calculations. Enter your answer in whole dollars not in millions)