Company FINC is investigating the feasibility of introducing a new product to the market. Based on the market research, it forecasts unit sales as follows: The new product will be priced to sell at $120 per unit to start, when the competition catches up after three years, FINC anticipates that the price will drop to $110. The variable cost per unit is $60, and the total fixed costs are $25,000 per year. The new product will require $20,000 in net operating working capital at the start, which will be recovered at the end of the project. This project will cost about $800,000 to buy the equipment necessary to begin production. This $800,000 will be 100% depreciated over the life of this project (8 years) as seven-year MARCS property. The depreciation schedule is shown as follows: The equipment will be worth 20% of its initial cost in 8 years, or the salvage value is $160,000 (=0.205800,000). The tax rate is 21%, and the required retum (WACC) on this project is 15%. 1. What are the estimated cash flows of this project? (10 points) 2. What is the NPV of this project? (2 points) NPV= 3. What is the IRR of this project? (2 points) IRR = 4. What is the Payback Period of this project? (4 points) Payback Penod = 5. Based on above information, should FINC proceed? Why? (2 points)