1. Suppose you are evaluating a project for XYZ Inc. You estimate the sales price of the product to be $100 and sales to be 1500 units per year. You figure the project has a life of 5 years. Variable costs amount to $50 per unit and fixed costs are $50,000 per year. The project requires an initial investment of $200,000 which is depreciated straight-line over 5 years. The actual market value of the initial investment after year 5 is $30,000. Net working capital investment is $50,000. The tax rate is 35%. The required return is 14%. Should we pursue this project