Frank Co. has the opportunity to introduce a new product.Frank expects the product to sell for $60 and to have per-unit variable costs of $35 and annual cash fixed costs of $4,000,000.Expected annual sales volume is 275,000 units.The equipment needed to bring out the new product costs $6,000,000, has a four-year life and no salvage value, and would be depreciated on a straight-line basis.Frank's cost of capital is 14% and its income tax rate is 40%.