. Part 2 of 5 Free Cash Flow JCrypt Corp is considering a project to create and sell tattoo inks containing tracking nanobots for states to apply on prisoners The new service would require a capital expenditure for producing the nanobots in year o of $1,500,000 and have a service life of five years The capital equipment would be depreciated on a straight-line basis over its service life (years 1-5) to a book value of zero. Operating income (EBIT), which includes COGS, Depreciation, and SG&A, for each of the five years would be $400,000. Upfront operating expenses (initial OPEX) for production equipment to mix nanobots into tattoo inks would occur in year o An inventory of $25.000 in ink pods would be put in place in year o. This inventory would return to zero at the end of the project's life. No other changes in net operating working capital are anticipated. The project's cost of capital (the company's weighted average cost of capital) is 12.5% The company's annual tax rate is 21%. Information summary Operating income: $400,000 Tax rate: 22% WACC: 12.50% Project life: 5 years Initial CAPEX: Si 500,000 Initial OPEX: $800,000 Change in inventory: $25.000 Pretax salvage value: $40,000 Question 6 of 15 10 Points Click to see additional instructions The net present value (rounded to the nearest whole dollan of this proposed project is $ "Nate Donouse comuns or be in your anner The internal rate of return of this proposed project (rounded to two decimal places as a percentage) is %. Question 8 of 15 5 Points Based upon the net present value of this project. Jcrypt Corp should , accept B. reject