Jocelyn Chen & Bosco Lau Toys has developed a new childrens toy. The project will last for 4 years. The total sales for the first year are $20,000 and the annual real growth rate of total sales is 20%. Operating costs are expected to be 40% of the sales revenues. Sales and operating costs numbers are presented in the following table:

Items	Year 0	1	2	3	4
Total sales	0	20000	24000	28800	34560
Operating costs	0	8000	9600	17280	20736

The product requires an immediate investment of $60,000 in plant and equipment today. The expected nominal salvage value of the plant and equipment at the end of 4 years is $0. Plant and equipment is depreciated at 20% per year. The standard half-year depreciation rule applies. The corporate tax rate is 40% and annual discount rate for all cash flows is 12%. a. Compute the Initial UCC, annual CCA and End of Year UCC. Put your numbers in the following table:

Year	Initial UCC	CCA	Ending UCC
1	30000	30000*20% = 6000	24000
2	54000	54000*20% = 10800	43200
3	43200	43200*20% = 8640	34560
4	34560	6912	27648

c. What is the NPV of this project? Should the firm undertake it?