Homework II (Pri Tools View ECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in P BUSN 346- Assignement II Suppose you can sell 5,000 units per year at a price of $300 each. Variable cost will run about $200 per unit, and the product should have a five-year life. Fixed cost for the project will run $150,000 per year. Further you will need to invest a total of $600,000 in manufacturing equipment. This equipment is five-years MARCS property for tax purposes. The salvage value of the equipment is $50,000. You will have to invest $450,000 in net working capital at the start. After that, net working capital requirements will be 20% of sales. Use a 30% tax rate throughout. The required return is 18%. A- Prepare a pro-forma income statement for each year. B- Calculate CF C- Should you accept the project? Why or why not? D- Assume that the equipment depreciated using straight line is your answer of part c will differ or not (show your answer) en 1201 Type here to search X th $ w) - Word Enable Editing lew. MACRS Year 1 2 3 3-Year 33.33% 44.44 % 14.82% 7.41 % 5-Year 20.00 % 32.00% 19.20 % 11.52 % 11.52 % 5.76 % 7-Year 14.29 % 24.49 % 17.49 % 12.49 % 8.93 % 8.93 % 8.93 % 4.45 % 4 5 6 7 8 10-9