help me on the capital budget analysis part.

example problem:

P 9-28 (similar to) E Question Help Your company has been doing well, reaching $1.02 milion in eainings, and is considering launching a new product. Designing the new product has already cost $533,000. The company estimates that it will sell 846,000 units per year for $2.94 per unit and variable non-labor costs will be $1.14 per unit Production will end after year 3. New equipment costing $1.01 million will be required The equipment wil be depreciated using 100% bonus depreciation under the 2017 TCIA 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 $298,000. The new product will require the working capital to increase to a level of $374,000 immediately, then to $409,000 in year 1, in year 2 the level will be S341000, and finally in year 3 the level will return to S298.000. Your tax rate is 21%. The discount rate for this project is 10.2%. Do the capital budgeting analysis for this project and calculate its NPV Note: Assume that the equipment is put into use in year 1 Depreciation in years 2 and 3 wil be s o. (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below (Round to the nearest dollar.) Year 0 Sales Cost of Goods Sold Gross Profit Depreciation EBIT - Tax Incremental Earnings + Depreciation Incremental Working Capital Capital Investment Incremental Free Cash Flow sl Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check Answer Your company has been doing well, reaching $1.22 million in earnings, and is considering launching a new product. Designing the new product has already cost $555.000. The company estimates that it will sell 860,000 units per year for $3.15 per unit and variable non-labor costs will be $1.25 per unit. Production will end after year 3. New equipment costing $1.21 million will be required. The equipment will be depreciated using 100% bonus depreciation under the 2017 TC A. You think the equipment w be obsolete at hea of year 3 and plan to scrap it. Your current level of working capital is $288.000. The new product will require the working capital to increase to level of S397,000 immediately. then to $413,000 in year 1, in year 2 the level will be S382000, and finally in year 3 the level will return to S288.000. Your tax rate is 21%. The discount rate for this project is 10.8%. Do the capital budgeting analysis for this project and calculate its NPV Note: Assume that the equipment is put into use in year 1 aton in year 1 willl t below tRound to1 The capital budgeting analysis for this project is shown below Year 0 Year 1 Year 2 Year 3 o S 2.709.000 S 2.709.000 S2,709.000 Sales - Cost of Goods Sold Gress Profit 1.075.000 1,075,000 1.075.000 01.634.000 1,834.000 1.834.000 Depreciation 1.210.000 S424 000 S .834000 S1.834.000 343.140 0S 334 980 S 1 290,880 1290.860 0 (74,000) 0 89 040 243.140 Incremental Earnings 1 210 000 0 109 000 1.210. 000 - Depreciation 18.000 (51,000); Incremental Working Caonal CapitalInvestment incrementa Free Cash Flow S 1319coo)s1.528 980 s1341 830 1.384 800 Question is complete All parts showing