Ca al Budget Exercise 2 Your company has spent S250,000 on research to develop puter game. The firm is planning to spend si 400,000 on a machine to produce the new game. Shipping and installation costs for the new machine total S200,000 and these costs will be capitalized and depreciated together with the cost of the machine. The machine will be used for 3 years, has a $200,000 estimated resale value at the end of three years, and will be dep reciated straight line over 4 years. Revenue from the new game is expected to be si.200,000 per year, with costs ofs500,000 per year. The firm has a tax rate of 35 percent, a cost of capital (discount rate) of6 percent, and it expects net working capital (NWC) by S150,000 at the begi nning of the project. This investment in NWC will be wholly uped at the end of the project. a) Complete the table below. b) In the second table below calculate theNet Present Value (NPV)of the project. Calculate the Profitability Index (PI) of the project. d) ls the Internal Rate of Return (IRR) of the project greater than, equal to or less than the cost of capital (discount rate)? Should your company proceed with this project? Exp ain based on the decision criteria for NPV, PI, and IRR. Yea Change in Gross Fixed