ACME Company is considering the development a new type of jet blaster pack that will allow Wiley E. Coyote to finally catch up to and catch the ridiculous Road-Runner. The jet pack will have a phone app that will have a remote-controlled net that will assist in the catching of road-runners and various other annoying characters. It will also have a built-in parachute in case the inevitable happens. The new jet-blaster pack will require a significant amount of capital budgeting analysis and the company has asked for your help in preparing the analysis. The expected life of the product is expected to be 8 years. At that time the company expects to have ready a next generation jet blaster that will render the current proposed model obsolete. The upfront capital expenditure required for equipment is expected to be $3,000,000 and this will have a CCA rate of 20%. Initial unit sales are expected to be 1,800 units, and the growth of units is expected to be 4% per year. The initial selling price will be $1,350, and this price is expected to rise at the rate of inflation which is expected to be 2%. Variable costs are expected to be 28% of Sales. Fixed costs for the first year are expected to be $800,000 and these costs will increase with inflation. The Salvage value of the equipment at the end of the project is expected to be $1,200,000. (Note: you can ignore any terminal tax effects on the salvage value.) Upfront working capital needs are expected to be $40,000, and thereafter are expected to be 13% of sales. Assume that all working capital will be recovered at the end of the project. If the discount rate is 9% and the tax rate is 25%; then: a) What is the NPV of the project? b) What is the IRR of the project? c) What is the Payback period of the project? d) What is the Discounted Payback Period? What is the Profitability Index