6. Anwar Corporation is considering a new project to manufacture solar calculators. Use the following information to calculate the NPV of this project and determine if the company should undertake it: - The project is expected to generate $2.5 million in incremental revenues and $0.6 million in incremental operating expenses each year for 5 years. - The project will require an initial expenditure of $5 million for new equipment. The machinery will be depreciated straight line to a salvage value of $0 over 5 years. - The project will require a one-time increase in working capital of $0.5 million in year 0. I - The tax rate is 30%; the appropriate discount rate is 12%. 1 2 3 Initial Investment Increase in WC $ 2.5 $ 2.5 $ 2.5 Revenue Operating expenses Depreciation Income before tax Taxes Income after tax a Free cash flow NPV