Fixed cost: $50,000 per year Opportunity cost: The company has an empty warehouse space. It is planning to use the warehouse as manufacturing facility for the new product. Currently, the best use of the warehouse is to lease it for $40,000 per year. The opportunity cost should be added to the fixed cost. Equipment to purchase: $300,000 Depreciation: The equipment will be depreciated according to the 3-year MACRS depreciation schedule shown below (circled): Erosion effect: The introduction of the new router will negatively impact the current product of the company. It is estimated that 20 percent of the new product sales is at the expense of the current product. Initial investment in NWC: $50,000 Tax rate: 21% Required retum: 25% a. With the new information under SCENARIO II, create the pro-forma income statements for years 1 to 4 . b. Calculate the operating cash flows (OCF) for years 1 to 4 . c. Calculate the capital requirements (NWC and fixed assets) for years 0 to 4 . d. Calculate the net income for each year. e. Calculate the project cash flow for each year. f. Calculate the net present value (NPV) of the project. Do you accept or reject the project using the NPV decision rule? g. Calculate the internal rate of return (IRR) of the project. Do you accept or reject the project using the IRR decision rule? h. Calculate the payback. If the cutoff is 3 years, do you accept or reject the project? i. Calculate the average accounting return (AAR). If the target AAR is 25%, do you accept or reject the project