2. Revenues from a new product are forecast as follows: Year M Revenues 40,000 30,000 20,000 10,000 0 5 and beyond Expenses are 40% of revenues, and working capital required in each year is expected to be 20% of the following year's revenues. An immediate investment of $35,000 in new equipment is also required. The equipment will be depreciated straight-line to a salvage value of zero over 4 years. The firm has a cost of capital of 12% and a tax rate of 40%. Compute NPV and IRR, and state whether the project should be accepted