Comprehensive example capital project, where it requires an asset that costs $120,000. It has an expected economic life of 3 years. The asset will be depreciated using the 3-year MACRS method. The company expects that the asset will be worth $30,000 at the end of the project. Incremental sales are expected to be $100,000, $110,000, and 120,000 for year 1 to 3, respectively. Corresponding expenses are expected to be 50% of the sales. The company will need to invest $12,000 at time 0 in net working capital, which will increase $1,000 each year. The cost of capital is 12% and the corporate tax rate is 40%. Develop the cash flows for the project. What are its NPV, IRR, and MIRR? Interpret the results in your own words. 56