Information for Problem 3. You are considering undertaking an entrepreneurial venture to create high end customized COVID face masks. The project is expected to last three years. Assume that your discount rate is 8%, and that the cost for equipment is $350,000. The CCA rate for the equipment is 20%, and the equipment is expected to have a salvage value of $100,000 at the end of the project. The tax rate is 25%. Upfront working capital needs are expected to be $80,000, and will be 15% of sales thereafter. All working capital is expected to be recovered at the end of the project. The initial selling price of the masks are expected to $28. The initial variable costs to manufacture the masks are expected to be $18 per mask, while fixed costs for the first year are expected to be $400,000. While you expect you will need to keep the selling price of the masks fixed at $28 for all three years, the variable costs and the fixed costs are expected to increase 10% per year. First year unit sales are expected to be 100,000 units, but this will decrease by 10% per year due to declining demand. What is the Net Present Value of this proposed venture and should you enter into it? 14