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Consider the following project of Hand Clapper, Inc. The companyis considering a four-year project to manufacture clap-commandgarage door openers. This project requires an initial investment of$12.8 million that will be depreciated straight-line to zero overthe project’s life. An initial investment in net working capital of$560,000 is required to support spare parts inventory; this cost isfully recoverable whenever the project ends. The company believesit can generate $10.3 million in pretax revenues with $3.8 millionin total pretax operating costs. The tax rate is 25 percent and thediscount rate is 9 percent. The market value of the equipment overthe life of the project is as follows: YearMarket Value (millions)1$10.2 28.3 34.5 41.2 a.Assuming the company operates this project for four years, whatis the NPV? (Do not round intermediate calculations andenter your answer in dollars, not millions, rounded to 2 decimalplaces, e.g., 1,234,567.89.)b-1.Compute the project NPV assuming the project is abandoned afterone year. (Do not round intermediate calculations and enteryour answer in dollars, not millions, rounded to 2 decimal places,e.g., 1,234,567.89.)b-2.Compute the project NPV assuming the project is abandoned aftertwo years. (Do not round intermediate calculations andenter your answer in dollars, not millions, rounded to 2 decimalplaces, e.g., 1,234,567.89.)b-3.Compute the project NPV assuming the project is abandoned afterthree years. (Do not round intermediate calculations andenter your answer in dollars, not millions, rounded to 2 decimalplaces, e.g., 1,234,567.89.)