Member's Mark is considering a new project, which produces product A. The project will have a 4-year useful life. The company expects that the production equipment will cost $1,600,000 (it is expected to have no salvage value at the end of the 4-year period.) The company estimates the annual production and sales of the product A as follow: Currently, the selling price of the product A is $30 per unit, the company expect a 5% annual inflation on the selling price. The total variable cost of the product A is $18 per unit (current cost), and a 4% inflation on variable cost is expected. No increase in existing fixed costs is expected. The project also requires investment in working capital, which is required to be 10% of the sales revenue for that year at the beginning of each year. The company is taxed at 18% based on the taxable profit. The company pays the tax one year after the tax is incurred. The taxable income includes tax allowance on depreciation (straight-line method). The company uses an after-tax cost of capital of 12% for capital budget decision making purposes. Requirements: a) Calculate the net present value (NPV) and the internal rate of return (IRR) of the project. b) Discuss the acceptability of the project based on your calculation and discuss the limitations of your evaluations