HuaWei Ltd manufactures a variety of electrical equipment. Project P30 is a new product that HuaWei is considering introducing to the market. The companys finance team has collected a lot of information about the project below: (Note: You may or may not need to use all this informati The company paid a consulting firm $600,000 last year for a test marketing analysis, as part of the evaluation. The HuaWei will have to purchase a new machine to produce the electrical products. The machine has an upfront cost of $5,000,000 at Year 0. The machine will be depreciated on a straight-line basis over 4 years to a zero balance. The company expects that the machine will be sold for $60,000 when the project is completed at Year 4. At Year 0, the net working capital will increase by $150,000. In the final year of the project (Year 4), net working capital will be fully recovered. Forecasted sales quantity, selling price and production costs of Project ABC are presented below. Year 1 Year 2 Year 3 Year 4 Sales quantity 3,000,000 units 3,000,000 units 3,000,000 units 3,000,000 units Selling price $3 per unit $3 per unit $3 per unit $3 per unit Fixed cost of production $2,000,000 per year $2,000,000 per year $2,000,000 per year $2,000,000 per year Variable cost of production $2 per unit $2 per unit $2 per unit $2 per unit The companys tax rate is 35 percent. The projects cost of capital is estimated to be 25 percent per annum. a. Calculate the net present value of the proposed project (see overpage for a template) (18 marks) b. Should the project be accepted or rejected? (2 marks)