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Mitchell, Inc. is considering investment in a machine to produce computer keyboards. The price of the machine is $400,000 and its economic life is ten

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Mitchell, Inc. is considering investment in a machine to produce computer keyboards. The price of the machine is $400,000 and its economic life is ten years. The machine will be depreciated to a value of zero over the ten-year period. Total size of the market is 1,000,000 keyboards per year. You can capture 1% of the market share each year. The price of the keyboards is $40 in the first year. You will incur fixed costs of $80,000 per year. The variable cost per unit of the keyboard is $20. Corporate tax rate is 34%. The discount rate is 15 percent. Estimate the total cash flows and find out the NPV, IRR, and PI of this project

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