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GlassWorks Inc. has developed a new vase. It can go into production for an initial...

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GlassWorks Inc. has developed a new vase. It can go into production for an initial westment in equipment of $6.3 million. The equipment will be depreciated straight line over 6 years, but in fact, it can be sold after 5 years for $583,000. The firm believes that working capital at each date must be maintained at a level of 10% of next year's forect sales. The firm estimates production costs equal to $110 per vase and believes that the vases can be sold for $5 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the vase becomes technologically obsolete. The firm's tax bracket 40%, and the required rate of return on the project is 12% Year Thereafter Salee millions of vare) 0 0.6 0.8 0.9 0.7 0.8 0.6 Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much win this increase project NPV? (Do not round your intermediate calculations. Enter your answer in millions rounded to 4 decimal places.) Change in NPV million

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