Desai Industries is analyzing an average-risk project, and the following data have been developed. 1. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. 2. The project should last for 3 years, and the cost of the machine is listed below and the machine will be depreciated to zero at the end of year 3 under a straightline method. 3. the machine will be sold at the end of the project and is expected to have a pre-tax salvage value of $1200. The tax rate is 21% 4. An intial increase in net operating working capital would be $10,000, which is recovered at the end of the project. 5. This is just one of many projects for the firm, the WACC is 11%. (18 points)