Need help please!

Triple J Sports projects unit sales for a new athletic training device. Production of the devices will require $6,500,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $5,900,000 per year, variable production costs are $525 per unit, and the unit price is $695 each. The equipment needed to begin production has an installed cost of $22,500,000. Because the devices are intended for professional athletes, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. In five years, this equipment can be sold for about 10 percent of its acquisition cost. The company is in the 35 percent marginal tax bracket and has a required return on all its projects of 18 percent. The unit sales information and MACRS depreciation schedule follow: MACRS DEPRECIATION BY CLASS OF PROPERTY MACRS 7-year property (ex: office furniture and fixtures such as desks, fax machines, lamps, files, chairs). What subjective (social, economic, governance, etc.) elements might influence any decisions? Assume the COO requests a review of the analysis and maintains that the numbers presented are correct, but he wants you to consider that $750,000 has been invested on initial research and development for this project which he notes is not included in your calculations. He suggests that you recalculate the values as this might influence your decision. What should be your response? Be specific