Below is a summary of information related to an expansion project your company is considering:

The required equipment for the project is expected to cost $$1,200,000$ including shipping and installation costs and have a useful life of $4$ years, which is the estimated length of the project.

The equipment will be depreciated using the straight$-$line method, meaning depreciation will be the same each year.

Inventory is expected to increase $$100,000$ at the beginning of the project.

The company estimates that it will sell $3,000,000$ units in Year $1,2,750,000$ units in Year $2,2,700,000$ units in Year $3,$ and $2,250,000$ units in Year $4.$ The company expects to sell the units at $$2\mathrm{.}50$ each.

The company estimates variable costs to be $$1\mathrm{.}00$ each unit in Year $1,$ $$1\mathrm{.}25$ each unit in Year $2,$ $$1\mathrm{.}40$ each unit in Year $3,$ and $$1\mathrm{.}65$ each unit in Year $4.$ Fixed costs are estimated to be $$1,000,000$ each year of the project.

The estimated tax rate is expected to be $25\%.$

The company is expecting to salvage the equipment for $$100,000$ at the end of the project.

The company will no longer needed to increased inventory and expects to fully recover the $$100,000$ at the end of the project.

The finance department estimates the weighted average cost of capital to be $10\%$ based on the risk assessment of the project.

Analyze this potential project by first calculating the expected free cash flows for each year of the project $($i$.$e$.$ years $0-4)$ and then calculate the net present value of the project $.$