Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that Applied Nanotech can sell 10 units per year at $500,000 net cash flow per unit for the next five years. The engineering department has come up with the estimate that developing the machine will take a $7 million initial investment. The finance department has estimated that a 23 percent discount rate should be used.
Requirement:
What is the base case NPV? (Negative amount should be indicated by a minus sign. Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount.