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Bob the Builder Inc is investing in a project and is purchasing a $7 million machine....

Bob the Builder Inc is investing in a project and is purchasing a $7 million machine. It will cost $1 million to transport and install the machine. The machine has a depreciable life of 3 years, it will be fully depreciated using straight-line depreciation, and will have no salvage value. For each of the next 4 years, the machine will generate incremental revenues of $7 million per year along with incremental costs of $5 million per year. The company’s tax rate is 15%. If Bob the Builder’s weighted average cost of capital (WACC) is 6%, what is the project’s net present value (NPV)?

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