2.Phone Home, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated using straight-line depreciation to zero over its 4-year tax life, after which time it will have a market value of $225,000. Estimated salvage value is $1,728,000 and book value is $1,650,000.The project requires an initial investment in net working capital of $360,000, all of which will be recovered at the end of the project. The project is estimated to generate $2,640,000 in annual sales, with a variable costs of $1,000,000 and $56,000 fixed cost. The tax rate is 33 percent and the required return for the project is 15 percent. 1.Set up the proforma Income Statement. 2. What is the NPV of the Project? 3. What are the projected Capital requirements? 4.What are the projected cash flows? 5. What is the after-tax salvage value? 7. What is the total depreciation