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Applied Nanotech is thinking about introducing a new surface-cleaning machine. The marketing department has estimated...

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Applied Nanotech is thinking about introducing a new surface-cleaning machine. The marketing department has estimated that Applied Nanotech can sell 15 units per year at $311,000 net cash flow per unit for the next four years. The engineering department has estimated that developing the machine will take a $14.8 million initial investment. The finance department has estimated that a 10 percent discount rate should be used. a. What is the base-case NPV? (Enter the answer in dollars, not millions of dollars. Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit \$ sign in your response.) Base-case NPV $ b. If unsuccessful, after the first year the project can be dismantled and will have an after-tax salvage value of $11.6 million. Also, after the first year, expected cash flows will be revised up to 20 units per year or to 0 units, with equal probability. What is the revised NPV? (Enter the answer in dollars, not millions of dollars. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in vour response.) Revised NPV $

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