MNC international has following sales for the year mentioned in Sheet 1. The sales price per unit is also given. Considering the market competition, the sale price would drop after 4^th year by given percentage. Its observed that the project has 20% of yearly sales as NWC with beginning NWC as 15% of 1^st years sales. The variable cost per unit is given as a percentage of sales per unit. The total fixed costs are equivalent to depreciation, administrative expense and utilities expense mentioned as a given percentage. It found that the amount of equipment needed for production is equivalent to the 60% of the total sales amount for all the years. The production equipment will be worth 20% of its actual cost at the end of 8 years. As the relevant tax is 33.5%. Suggest if we should proceed with the project?

1- Refer to the Book chapter 10 for MACRS percentage ?

\begin{tabular}{|l|r|r|} \hline Year & Unit Sales & \\ \hline & 1 & 34716 \\ \hline & 2 & 35397 \\ \hline 3 & 34611 \\ \hline & 4 & 35502 \\ \hline & 5 & 35845 \\ \hline & 6 & 35620 \\ \hline Sales price & 7 & 34859 \\ \hline & 8 & 35454 \\ \hline Drop Percentage & & \\ \hline & & \\ \hline Variable Price & & 8 \\ \hline & & \\ \hline & & 0.15 \\ \hline Administrative Expense & & \\ \hline Utilities Expense & & 4.1 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline Year & Unit Sales & \\ \hline & 1 & 34716 \\ \hline & 2 & 35397 \\ \hline 3 & 34611 \\ \hline & 4 & 35502 \\ \hline & 5 & 35845 \\ \hline & 6 & 35620 \\ \hline Sales price & 7 & 34859 \\ \hline & 8 & 35454 \\ \hline Drop Percentage & & \\ \hline & & \\ \hline Variable Price & & 8 \\ \hline & & \\ \hline & & 0.15 \\ \hline Administrative Expense & & \\ \hline Utilities Expense & & 4.1 \\ \hline \end{tabular}