1. 18 pts] Based on a recent market study three years: eto ewhich cost $50,000, a firm intends to launch a new laser inate cockroaches. The expected sales are the following for the next $50,000 The sales price ofthe in net working Year Units Sold 1 53,000 2 86,000 3 46,000 25,000. This project requires an initial investment (machine) of $2,500,000 which can be depreciated n a linear basis over 5 years. At the end of the project in year 3, the machine can be sold for 30% of e purchase price. The company's income and capital gains are taxed at a rate of 40%, and the ualncaital (NWC) of $10,000 at the launch of the project (t-0), and the NWC will then be of the total sales of the firm for the following years except for the last year (t-3) where e zero. The variable cost per unit is estimated at $60 and there are annual fixed costs of e new system is estimated at $95 per unit. This new project will require an increase quired rate of return by investors is 20% compute the NPVofthe project