2. You want to place high-tech production equipment in your production facilities. The equipment to be installed has an investment cost of 6,000,000 and will be sold for 500,000 at the end of its five-year economic life. The equipment is expected to increase the annual revenue by 2,800,000 and reduce the annual production cost by 2,200,000. A net working capital investment of 1,000,000 will be made at the beginning of the project and this investment will be recuperated at termination. Six production engineers, each with an annual salary of 500,000 are required to maintain the equipment. One of these engineers will be appointed from within the firm, requesting a change of role in the production department, while the others will be new hires. Your firm has an average cost of capital of 35% and a corporate tax rate of 25%. a) Determine the free cash flows of the project under main headings and show them in a table. b) Draw a cumulative free cash flow graph for the project and show the payback period on the chart. c) Calculate the net present value of the project and state what the decision about the project should be