Needle and Thread Inc. is considering expanding one of its production facilities to build a new line of sewing kits. The project would require a $9,000,000 capital investment and will be fully depreciated (straight-line) over its 3 year life. They believe they can salvage $0 for the equipment at that time. Incremental sales are expected to be $10,000,000 annually for the 3 year period with costs (excluding depreciation) of 42%. The company would also have to commit initial working capital to the project of $1,000,000. The company has a 36% tax rate. Project cash flows and the Projects NPV? The appropriate discount rate is 10%. a