Find Npv of the project too

Your company has been doing well, reaching $1.14 million in earnings, and is considering launching a new product. Designing the new product has already cost $462,000. The company estimates that it will sell 840,000 units per year for $2.96 per unit and variable non-labor costs will be $1.14 per unit. Production will end after year 3. New equipment costing $1.17 million will be required. The equipment will be depreciated using 100% bonus depreciation under the 2017 TCJA. You think the equipment will be obsolete at the end of year 3 and plan to scrap it. Your current level of working capital is $292,000. The new product will require ti working capital to increase to a level of $381,000 immediately, then to 5406,000 in year 1, in year 2 the level will be $355,000, and finally in year 3 the level will return to $292,000. Your tax rate is 21%. The discount rate for this project is 10.1%. Do the capital budgeting analysis for this project and calculate its NPV. Note: Assume that the equipment is put into use in year 1. Design already happened and is V irrelevant). (Select from the drop-down menu.) According to the bonus depreciation schedule, depreciation in year 1 will be $ (Round to the nearest dollar.) Depreciation in years 2 and 3 will be $1. (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Year 3 Sales $ S s $ $ - Cost of Goods Sold Gross Profit si $ Depreciation $ S $ EBIT SI S s! S s S SO S S SI SI S - Incremental Earnings + Depreciation Incremental Working Capital Capital Investment Incremental Free Cash Flow $ S S SI SI si s $ $ $ $ Your company has been doing well, reaching $1.14 million in earnings, and is considering launching a new product. Designing the new product has already cost $462,000. The company estimates that it will sell 840,000 units per year for $2.96 per unit and variable non-labor costs will be $1.14 per unit. Production will end after year 3. New equipment costing $1.17 million will be required. The equipment will be depreciated using 100% bonus depreciation under the 2017 TCJA. You think the equipment will be obsolete at the end of year 3 and plan to scrap it. Your current level of working capital is $292,000. The new product will require ti working capital to increase to a level of $381,000 immediately, then to 5406,000 in year 1, in year 2 the level will be $355,000, and finally in year 3 the level will return to $292,000. Your tax rate is 21%. The discount rate for this project is 10.1%. Do the capital budgeting analysis for this project and calculate its NPV. Note: Assume that the equipment is put into use in year 1. Design already happened and is V irrelevant). (Select from the drop-down menu.) According to the bonus depreciation schedule, depreciation in year 1 will be $ (Round to the nearest dollar.) Depreciation in years 2 and 3 will be $1. (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Year 3 Sales $ S s $ $ - Cost of Goods Sold Gross Profit si $ Depreciation $ S $ EBIT SI S s! S s S SO S S SI SI S - Incremental Earnings + Depreciation Incremental Working Capital Capital Investment Incremental Free Cash Flow $ S S SI SI si s $ $ $ $