Investors and customers have shown increasing concerns about corporate sustainability, which requires firms to pay more attention to environment. Chemical ABC, a company producing industrial chemicals, is considering a project that updates its product line to be more environment-friendly in both its producing process and final products. The project will last for 3 years. The initial investment is 600,000, which will be depreciated straight line over the project period. The residual value will be zero. The demand for the new products is expected to be 4,000 units in the first year. Due to the increasing demand for the environment-friendly products, the annual growth rate of the demand is expected to be 15% in each of the remaining two years. The sale price per unit is 200 and the cost per unit is 100. Assume that the sale price and cost will remain unchanged. The update of the product line and the expected increase in sales require an increase in various net working capital accounts at the beginning of each year. In particular, Chemical ABC needs to hold 9% of its annual sales in cash, 5% of its annual sales in accounts receivable, 2% of its annual sales in inventory, and 6% of its annual sales in accounts payable. The working capital will be released at the end of the project. The firm is in the 35% tax bracket and its cost of capital is 15%. Required: 1. Calculate the changes in Net Working Capital in each year of the Chemical ABC's new project