14. After spending $10,000 on client-development, you have just been offered a big production contract by a new client. The contract will add $200,000 to your revenues for each of the next 3 years and it will cost you $140,000 per year to make the additional product. You will have to use some existing equipment and buy new equipment as well. The existing equipment is fully depreciated but could be sold now for $50,000. If you use it in the project, you think you will still be able to sell it for $10,000 at the end of the project in year 3. You will buy new equipment valued at $30,000 and straight-line depreciate it to zero over 4 years. It will be sold for $9,000 at the end of the project. You will have to immediately increase your net working capital from $20,000 to $30,000. It will drop to $25,000 in year 2 and return to $20,000 at the end of the project. Your company's tax rate is 35% and your discount rate is 15%. Using the space below and/or the template on the next page, eate a pro-forma statement and compute the IRR of this project. Please label all cash flow items, and indicate whether the contract should be accepted (note in the template that you may have more than one item in a cell). (20 points)