• NPV & IRR: Incremental Cash Flow Projections: Suppose a company has the opportunity to bring out a new product, the Vitamin-D Drink. • The initial cost of the assets is $100 million, and the company’s working capital would increase by $10 million during the life of the new product. The new product is estimated to have a useful life of four years, at which time the assets would be sold for $5 million. The assets have a book value of $2 million. • Management expects company sales to increase by $120 million the first year, $160 million the second year, $140 million the third year, and then trailing to $90 million by the fourth year because competitors have fully launched competitive products. • Operating expenses are expected to be 70% of sales, and depreciation is based on an asset life of four years using straight line depreciation. • If the required rate of return on the Vitamin-Burger project is 8% and the company’s tax rate is 35%, should the company invest in this new product? Why or why not?