Complete the capital budgeting analysis for this project below:(Round to the nearest dollar.)

Your company has been doing well, reaching $1.08 million in earnings, and is considering launching a new product. Designing the new product has already cost $532,000. The company estimates that it will sell 797,000 units per year for $3.03 per unit and variable non-labor costs will be $1.04 per unit. Production will end after year 3. New equipment costing $1.02 million will be required. The equipment will be depreciated to zero using the 7-year MACRS schedule. You plan to sell the equipment for book value at the end of year 3. Your current level of working capital is $303,000. The new product will require the working capital to increase to a level of $371,000 immediately, then to $397,000 in year 1, in year 2 the level will be $344,000, and finally in year 3 the level will return to $303,000. Your tax rate is 21%. The discount rate for this project is 10.4%. Do the capital budgeting analysis for this project and calculate its NPV Note: Assume that the equipment is put into use in year 1. Design already happened and is sunk (irrelevant). (Select from the drop-down menu.) According to the 7-year MACRS schedule, depreciation in year 1 will be $ 145758. (Round to the nearest dollar.) Depreciation in year 2 will be $ 249798. (Round to the nearest dollar.) Depreciation in year 3 will be $ 178398. (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Year 3 Sales $ $ $ $ - Cost of Goods Sold Gross Profit $ - Depreciation EBIT $ $ - Tax Incremental Earnings $ $ EA + Depreciation - Incremental Working Capital - Capital Investment Incremental Free Cash Flow $