5. A firm is planning to use the land it purchased three years ago for $800 in its current project. The current value of the land is $750. The project will have a life of fours years, at the end of which, the land will be sold for 5950. The firm paid SI10 to a design firm for the plans of its new manufacturing facilities. The firm expects to sell 300,400, 250, and 180 units of its new product cach year for the next four years, respectively, at a price of S7 per unit. The fixed costs for the project will be $300 per year, and vanable costs will be 15% of sales. The production equipment will cost $3.500 and will be depreciated based on a three-year MACRS schedule. At the end of the projeet, the equipment can be scrapped for S400. A constant net working capital level of S 130 will need to be maintained The firm has a 35% tax rate, and the WACC ofthe project is 12%. Should the firm accept this project? 30 Points Year Three-Year 33.33% 44.45 14.81 7.41