ABC Publishing is considering developing a new product. Estimates for demand of this product are 150,000 units annually for the first 15 years and 80,000 units annually for the following 6 years. Beyond that, the product is considered to be obsolete and production will cease. Price and variable costs would be $100 and $65, respectively. Fixed costs would be $225,000 per year. This option also requires an initial net working capital investment of $4,000,000. This initial NWC investment can be reduced to $3,000,000 when sales drop (i.e. from year 15 to year 16). The remaining net working capital will be fully recouped at the end of the project. If they take this option, they must buy additional equipment for a total of $20 million. This equipment will be depreciated straight-line over a 30 year period of time. When the project is ended in 21 years), it is expected they will be able to sell the equipment for $1,300.000. Management has determined that the appropriate discount rate to use will be 16%. What is the NPV of this project? b. Suppose that, instead of a price of $100. you are submitting a proposal to produce 120,000 units annually for the next 20 years. All other aspects of the project remain the same. What price per unit would you submit in your proposal? ABC Publishing is considering developing a new product. Estimates for demand of this product are 150,000 units annually for the first 15 years and 80,000 units annually for the following 6 years. Beyond that, the product is considered to be obsolete and production will cease. Price and variable costs would be $100 and $65, respectively. Fixed costs would be $225,000 per year. This option also requires an initial net working capital investment of $4,000,000. This initial NWC investment can be reduced to $3,000,000 when sales drop (i.e. from year 15 to year 16). The remaining net working capital will be fully recouped at the end of the project. If they take this option, they must buy additional equipment for a total of $20 million. This equipment will be depreciated straight-line over a 30 year period of time. When the project is ended in 21 years), it is expected they will be able to sell the equipment for $1,300.000. Management has determined that the appropriate discount rate to use will be 16%. What is the NPV of this project? b. Suppose that, instead of a price of $100. you are submitting a proposal to produce 120,000 units annually for the next 20 years. All other aspects of the project remain the same. What price per unit would you submit in your proposal