Derive the net cash flows for a 5-year expansion project in which your firm is purchasing $26,050,000 in equipment. If the project is intended to increase sales by $11,200,000 per year (Note: Each year has $11,200,000 in Sales), decide whether to accept or reject it (based on its NPV and IRR) given the following information. O O O o O o o Depreciation of equipment: 5 year MACRS Market value in year 5: $3,650,000 Marginal Tax Rate: 35% Capital Gains Tax Rate: 15% Variable/Fixed Costs: 55% of Sales in years 1-3; 50% of Sales in years 4-5 Increase in Net Working Capital: $1,200,000 Cost of Capital: See below WACC Inputs (Re computed using CAPM only): LT Debt: 5000 bonds outstanding of a 7-year maturity; $985 = PV, 5.7% = Coupon Rate (Semiannual PMT) Common Stock: 40,000 shares outstanding: $25 price today Preferred Stock: 30,000 shares of 2.85% dividend; $72 price today Other CAPM Information: ERm = 7% Rf = 1.50% Beta = 1.35 Tax Rate = 35%