e. f. At the end of the project, the building is expected to have a market value of $10 million and the equipment is expected to have a market value of $2 million. The production department has estimated that variable manufacturing costs would be $4000 per unit, and that fixed overhead costs, excluding depreciation would be $20 million a year. They expect variable costs to rise by 3 percent per year, and fixed costs to rise by 2 percent per year. Depreciation expense would be determined in accordance with MACRS rates. g. h. RIC must have an amount of NOWC on hand equal to 10 percent of the upcoming year's sales. RIC's marginal tax rate is 25 percent, its cost of capital is 12 percent, and it assumes that all operating cash flows occur at the end of the year. Evaluate the project using the NPV rule and the IRR rule.