Eric Scanzillo, a manager of the Plate Division for the Red Dog Manufacturing company, has the opportunity to expand the division by investing in additional machinery costing $420,000. He would depreciate the equipment using the straight-line method and expects it to have no residual value. It has a useful life of 7 years. The firm mandates a required after-tax rate of return of 14% on investments. Eric estimates annual net cash inflows for this investment of $125,000 before taxes and an investment in working capital of $2,500 that will be returned at the project's end. Red Dog's tax rate is 35%. Present Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate the of this investment. (Use factors to three decimal places, X.XXX, and round all currency calculations to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value of this investment is: Requirements 1. Calculate the net present value of this investment. 2. Calculate the accrual accounting rate of return on initial investment for this project. 3. Should Eric accept the project? Will Eric accept the project if his bonus depends on achieving an accrual accounting rate of return of 14% ? How can this conflict be resolved