As the owner of a toy factory, you are considering an investment in the production of a new toy helicopter called Sky Citadel. The introduction of the toy requires an immediate investment in 100 new machines costing $16,000 each. Installing each machine costs an additional $2,000 per machine. Each machine will be depreciated according to the straight-line method toward a salvage value of $1,000. The life of the project is estimated to be 4 years, after which each machine will be sold for $1, 200.2 The production facility will be located on a site currently owned by your company. If the project is not accepted, this space could be rented for $350,000 per year (these rental payments are given pre-tax and occur at the end of each year). The project also requires an immediate initial investment in net working capital in the amount of $220,000, which will be recovered at the end of the project's life in year 4 (i.e., end of year 4). To evaluate the attractiveness of this project, you have completed a feasibility study, which cost you $80,000. According to the results of this study, you expect to sell 40,000 toys each year during the project's life at the price of $80 per toy. Production costs are estimated to be $20 per toy. In addition to these variable costs, you expect to incur $1,000,000 per year in advertising expenditures to support the sales of Sky Citadel. Among your staff, your firm currently employs an office manager and an accountant. The annual salaries of the office manager and the accountant are $60,000 and $75,000, respectively, and you plan to continue using their services over the next 4 years and maintain the same level of their compensation, which is not expected to change as a result of this project. Finally, the results of your study indicate that the introduction of Sky Citadel will cannibalize the sales of other toys currently produced by your firm and erode their combined after-tax cash flow by $120,000 per year. If the discount rate is 12% and the tax rate is 30%, please find the NPV and the IRR for this project. Would you recommend proceeding with this investment