3. Capital budgeting (from final 2016) The company is going to analyse a new investment project which has the following characteristics: $5.00 Unit price Annual unit sales Variable cost per unit Investment into new machinery (t-0) Investment in working capital recovered at the end of projeci) Project life Annual depreciation Market value of machinery (t-6) Tax rate profits and capital gains) Required rate of return (WACC) Marketing research expense was conducted earlier this year) 40,000 $2.25 $300,000 $50,000(fully 6 years $40,000 30,000 40% (the same "for 10% $11,000 (the research Questions: a) Find the project cash flows (initial investment, operating cash flows each year and terminal cash flow) b) Evaluate the project NPV c) Should the company invest into such project? Explain