FDC has decided to offer Unicom Cookies. We paid a non-refundable. $120,000 for a marketing survey to help us understand food trends prior to settling in on Unicorn as the next new cookie option. FDC thinks that the new cookie will generate $300,000 in incremental revenue in year 1 year and revenue will grow at 6%. Fixed costs will be $125,000 per year, and variable costs will be approximately 30% of sales (lots of food coloring). The capital investment in the equipment needed to produce the new cookies will cost $200,000 and will be depreciated in a straight-line manner for the 4 years of the cookie's life of you think unicorn will really last that long). The change in net working capital will be the following year zero 10k Increase stocking up on the ingredients, etc). year 1- 20k increase (really ramping up/ year 2.5k decease (beginning to get paid), year 3 = 10k decrease, year 4 - 15k decrease. The firm a marginal tax rate of 21%. The required rate of return on projects with similar risk is 9% Lay it out before you start you get credit for this ! Please calculate the Net Income for all 4 years as well as the NPV What if fixed costs increased by 15%