1. Schroeder Electronics is considering a 3-year project which will require the purchase of $3 million in new equipment. The equipment will be depreciated using a 3-year MACRS as follows: 40%,30%,20%, and 10% for years 1-4. Schroeder expects to sell the equipment at the end of the project for 15% of its original cost. The company also expects to make use of an old plant valued at $1 million after-taxes, which will be returned to the firm at the end of the project at the same after-tax value. Annual sales are estimated at $5 million in the first year and increase by $0.5 million every year thereafter. The total cost of goods sold is expected to be 40% of sales. Net working capital equal to 10% of next year's sales will be required to support the project annually. Schroeder desires a 10% rate of return on this project. The tax rate is 40%. a. What are the annual net operating profits after taxes (NOPAT) from this project? b. What are the cash flows due to the NOWC from this project? c. What are the annual net investments in operating capital (NIOC) from this project? d. What are the NPV and IRR of this project? Should the management of Schroeder Electronics accept this project