You are evaluating a project that increases your near-term inventory efficiency. The project will initially cost $2 million in capital expenditures (immediately), and it will be depreciated over three years (straight-line) with zero salvage value. You do not anticipate additional capital spending. The firms marginal tax rate is 35%, and the projects WACC is 30%. Assume that all other net working capital accounts (other than inventory) and capex remain the same. Revenue and Cost of Goods Sold projections are shown below. What is the NPV of this project?

i) - $70,241 ii) $533,735 iii) - $640,967 iv) $51,134 v) -$1,021,729 Actual (last year) (amounts in $millions) 2015 2016 2017 2018 Revenue 50 200 300 250 COGS 40 140 200 150 Inventory Days Oustanding Base Case 70 70 60 50 New Project 70 50 50 50