3) IFC currently processes seafood with a computer-controlled unit it purchased several years ago. The unit, which originally cost $500,000, currently has a UCC of $250,000. IFC is considering adding a newer and more efficient unit. The new unit will cost $700,000 and will require an additional S50,000 for delivery and installation. The new unit will belong to the class 10 assets with a CCA rate of 15%. IFC's tax rate is 40% and this project's cost ofcapital is 1056. Assuming the half-year rule applies. The IFC also anticipates that it will have to maintain its working capital requirements above its regular levels as follows: Year 0: $50,000. Year I: $60,000; Year 2: $70,000, Year 3. S60,000: Year4 $50,000. It is further anticipated that at the end of the fifth year, working capital requirements will return to pre-project levels If IFC purchases the new unit, the first year revenue is expected to increase by $100,000 due to increased processing capacity), and the first year operating expense is expected to decrease by S20,000. The difference of the annual revenues and operating expenses, which is R-E, is expected to grow at 3% per year till the end of. year. After 5 years, the salvage value of the new unit is expected to be $70,000 IFC also expects that the firm will lay off I worker at the end of year l and 2 workers at the end of year 2 sinee the new unit requires less labor. IFc will pay the laid of workers one-time compensation of $25.000 per person. All the eash flows are in nominal term except for the salvage of the new unit. The salvage of the new unit is in real terrm. Assuming the inflation rate is 2% per year over the 5-year period. ate o Calculate the NPV for the new project and provide your recommendation based on your NPV result