(Ignore income taxes in this problem.) Allura Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $500,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $50,000 at the end of 10 years. The machinery will also need a $35,000 overhaul at the end of Year 5. A $40,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $110,000 per year for each of the 10 years. Axillar's discount rate is 15%. Items Year(s) Amount 15% Factor Present Value Cost of machinery Now ($500,000) 1 ($500,000) Working capital increase Now ($40,000) 1 ($40,000) Annual cash inflows 110 $110,000 5.019 552,090 Overhaul 5 ($35,000) 0.497 ($17,395) Salvage value 10 $50,000 0.247 12,350 Working capital release 10 $40,000 0.247 9,880 Net present value $16,925 Required: (a) What is the net present value of this investment opportunity? (b) Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo?