Question $15$

Doce Corp. is considering launching a new product. The new manufacturing equipment will cost $$6\mathrm{.}6$ million and production and sales will require an initial $$2\mathrm{.}9$ million investment in net operating working capital. Doce spent and expensed $$1$ million last year on research and product development. Rather than build a new manufacturing facility, Doce plans to install the equipment in a building it owns but it is not now using. The building could be sold for $$23$ million after taxes and commissions. The company also plans to use a vacant lot adjacent to the building for parking for the project. The site requires $$1\mathrm{.}3$ million worth of improvements before it is suitable. The company had bought the piece of land $5$ years ago for $$12$ million and has been empty ever since. Today, the value of the land net of taxes is estimated at $$26\mathrm{.}7$ million. The tax rate is $40\%.$

What is the initial investment outlay $($IO$)$ for the NPV evaluation of the project? Since the IO is a cash outlay, enter the answer using the negative sign $(-)$ in front of the first digit of your answer.

Enter your answer in millions. For example, if you obtained $-$$$3,450,000$ then enter $-3\mathrm{.}45$; for $-4,000,000$ then enter $-4\mathrm{.}00$

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