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A firm is considering launching a new product expected to be able to generate sales of $875, 000, $775, 000, and $487, 500 for the

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A firm is considering launching a new product expected to be able to generate sales of $875, 000, $775, 000, and $487, 500 for the next three years, respectively. You estimate that 34.0% of these sales figures would come from customers who would swap to the new product from one of the older existing products. Both the old products and new product will have variable costs per unit that are 26.0% of the sales price of the product. Starting the project would require an initial up-front investment in inventory of $75,000. This would be followed by further annual increases in the inventory level of $39,000 in each of the three years of the project. At the end of the project, all of this inventory will be fully recoverable at cost (at t=3). The project would make use of the spare capacity within an existing production facility that was built by the company 7 years ago at a cost of $4,750,000. The firm is not able to find an alternate use for the factory's spare capacity other than this new project, although the rest of the factory will continue to be used making the firm's other products. In order to make the new product, the company would need to invest in additional machinery and tooling at an up-front cost of $540,000. All assets are depreciated for tax purposes by the firm according to the straight-line method. The factory is being depreciated to zero over its original tax life of 17 years, whereas the machinery and tooling would be depreciated to zero over an original tax life of 7 years. The project will last for third year years. At the end of this time, the machinery and tooling can sold for a market price of $180,500, The firm pays tax at a marginal rate of 35.0% on all profits associated with this decision. The firm's WACC is 10.5% per annum A) If the fimm accepts the project today, what would be the resulting incrementa after-tax cash flow from the sale of long-term assets at the end of the project at the end of Year 3? If the firm accepts the project today, it would receive an incremental after-tax cash flow of $ from selling some of its plant, property, and/or equipment (ie, some of its long-term assets) at the end of Year 3. (Round your answer to the nearest dollar (Use the unrounded number in any future question parts that require it) B) What is the NPV (at t=0) of the project for this firm? You estimate that the the net present value of the Eggo 11 project is $ (Round your answer to the nearest dollar

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