Dewina Food Industries is considering the development of a new ketchup product. The ketchup will be sold in a variety of different colours and will be marketed to young children. In evaluating the proposed project, the company has collected the following information:

• The company estimates that the project will last for four years.
• The company will need to purchase new machinery that has an up-front cost of $30 million. At the end of the project, the company expect to sell off the machinery for $5 million.
• The machinery will be depreciated on a 4-year straight-line basis towards zero salvage value.
• Production on the new ketchup product will take place in a recently vacated facility that the company owns.
• The project will require a $6 million increase in inventory. The company expects that its accounts payable will rise by $1 million. After t = 0, there will be no changes in net operating working capital, until t = 4 when the project is completed, and the net operating working capital is completely recovered.
• The company estimates that sales of the new ketchup will be $20 million each of the next four years.
• The operating costs, excluding depreciation, are expected to be $10 million each year.
• The companys tax rate is 28 percent.
• The projects WACC is 10 percent.

Draw up the project analysis worksheet providing details of each of the three basic elements that must be considered in your evaluation and make recommendation based on the NPV and IRR criteria?