Alice's firm is considering launching a new product. The product will sell for $130 per unit to start. When competition catches up after three years, however, Alice anticipates that the price will drop to $120. This project will require $30,000 in net working capital at the beginning. Subsequently, total net working capital at the end of each year will be about 10 percent of total sales for that year. The variable cost per unit is $70, and total fixed cost is $30,000 per year. It will cost about $1,000,000 to buy the equipment necessary to begin production. This investment is primarily in industrial equipment, which qualifies as seven-year MACRS property. The relevant tax rate is 34 percent. Year 1 Year 2 1 2. 3 Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 3 Unit Sales 3,000 5,000 6,000 6,500 6,000 5,000 4,000 3,000 4 4 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 5 5 6 7 6 7 8 8 Based on this information Calculate cash flow from asset for year 8