20 points: Show your work for full credit An expansion decision * Data on proposed new asset MACRS class: 3-year Economic life: 4 years Price: $200,000 Freight and installation: $40,000 Salvage value: $25,000 Effect on NWC: Increase inventories by $25,000 and increase A/P by $5,000. Sales: $200,000/year Costs excluding depreciation: $120,000/year Tax rate: 40 percent Cost of capital: 10 percent Calculate (1) the payback, (2) the NPV, (3) the PI, and (4) the IRR of the project. Would you accept the project? Why