A manufacturing firm plans to introduce a new product line that involves the following investments and cash flows:

• Initial investment: $400,000
• Estimated life: 4 years
• Annual revenue: $100,000
• Annual operating costs: $20,000
• Tax rate: 35%
• Salvage value: $0

Discount factors:

• 8%: 3.312
• 10%: 3.170
• 12%: 3.037
• 14%: 2.913

Requirements:

• Calculate the annual depreciation.
• Determine the after-tax net cash flows.
• Evaluate the NPV at each discount rate.
• Calculate the project's IRR.

Make a recommendation based on the results.