Cost Cutting CBD Inc a processor of CBD oils, is analyzing a potential opportunity to cut costs. It can spend $1,500,000 today on the purchase and installation of a new automated processing line. The equipment will have a six-year life, at which time it can be sold for $250.000. The equipment qualifies as a Class 8 asset with a 20% CCA tate. Since the equipment was be purchased in 2017, it was subject to the half-year rule The benefit of installing the new equipment is a reduction in labor costs of $400,000 per year. The new process will lead to an immediate increase in Net Working Capital (NWC) of $25,000, which will be recovered at the condution of the project. The firm has a 30% corporate tax rate and it wants a 20% return should they undertake this cost-cutting program? What is the NPV for the project? Based on your answers to the first six questions, what is the appropriate course of action to follow