After spending 59,200 on client-development, you have just been offered a big production contract by a new dient. The contract will add 5199,000 to your revenues for each of the next five yeas and it will cost you $96,000 per year to make the additional product. You with have to use some existing equipment and buy new equipment as well. The existing? ecupment is fuly depreciated, but could be sold for $55,000 now. If you use it in the project, it wal be worthless at the end of the project You will buy new equipment yalued at 525,000 and use the 5 year MACRS schedule to depreciate ti it will be worthless at the end of the project. Your current production manager earns $75,000 pet year. Since shi is busy with ongoing peojects, you are planning to hire an assistant at $36.000 pet year to help with the expansion. You will have to immedistely increase your inventory from 520.000 to $30,000. It wili return to $20,000 at the end of the project Your company's tax rate is 21% and your discount rate is 15 the What is the NPV of the contract? (Note Asstime that the equprnent is put into use in yeat 1) Calculate the liee cash flows belon for years 0 though 2 (Round to the nearest dotlar.) Atter spending $9,200 on client-development, you have just been offered a big production contra next five years and it will cost you $96,000 per year to make the additional product. You will have equipment is fully depreciated, but could be sold for $55,000 now. If you use it in the project, it wil $25,000 and use the 5-year MACRS schedule to depreciate it. It will be worthless at the end of the busy with ongoing projects, you are planning to hire an assistant at $36,000 per year to help with i $20,000 to $30,000. It will return to $20,000 at the end of the project. Your company's tax rate is 2 Assume that the equipment is put into use in year 1.)