Kent State Innovation Labs (KSIL) is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by you. The production line would be set up in unused space in a warehouse in downtown Kent, OH. The invoice price of the machinery would be approximately $235,000, would require another $15,000 in shipping charges, and would cost an additional $25,000 for equipment installation. The machinery has an economic life of 4 years, and KSIL has secured a special tax ruling that places the equipment in the MACRS 3-year class. Management expects the machinery to have a salvage value of $25,000 after 4 years of use. This new product line would generate an incremental amount of sales of 1,250 units per year for 4 years at an incremental cost in the first year of $100 per unit, excluding depreciation. Each unit can be sold in the first year for $200. The sales price and cost are both expected to increase by an inflation rate of 3% per year. The firms net working capital, to handle the new line, would have to increase by an amount equal to 12% of sales revenues. The firms overall weighted average cost of capital is 10%, and the firm's tax rate is 25%. a. Enter the input data for this project Analysis of New Expansion Project Part I: Input Data Results summary Equipment cost $235,000 NPV = $20,000 Shipping charge $15,000 IRR = Installation charge $25,000 MIRR = Economic Life 4 Payback = Salvage Value $25,000 Tax Rate 25% Cost of Capital 10% Units Sold 200 Sales Price Per Unit $1,250 Incremental Cost Per Unit $100 NWC/Sales 12% Inflation rate 3%