5. (10 points) TKL, Incorporated projects unit sales for a new seven-odave voice emulation implant as follows: Year Unit sales 71,000 2 84,000 3 103.000 95,000 64,000 Producion of the implants will require $2,300,000 in networking capital to start and additional net working capital investments each year equal to 15% of the projected sales increase for the following year. Toal fixed costs are $2,900,000 per year, van abie production costs are $285 per unt, and the units are priced at $410 each. The equipment needed to begin production has an installed cost of $14800,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property (depreciation ratio in first five years are 14 29%, 24.49% 17.49%, 12.49%, 8.93%, respectively), in five years, this equipment can be sold for about 20% of its acquisition cost. The tax rate is 21% me required return is 18%. Based on the preliminary project estimates, a. What is the NPV of the project? I b. What is the IRR? Work Assignment ( Excel (With template) Page Layout Formulas Data Review Viow Home Insert XO . Copy Paste Format Arial 12 A B 1 Wrap Text Merge Center Accounting $ . % ) Conditional Format Cell Formatting Table Styles 3 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates E27 3 D Output area (cream), final answer in yellow Year Ending book value Yeare Year Yaar 1 Year 2 Year 3 Year 4 Years Sales Variable costs Foxed costs Depreciation EBIT Taxes Net income Depreciation Operating cash flow Proiect cash flows Operating cash flow Change in NWC Capital spending After-tax salvage cash flow Total project cash flow Net present value Internal rate of return