) Phillips Instruments, Inc. plans to introduce a new product in the market. The cost of the machines to produce these goods is $ 2,000,000. The firm expects that these machines will be sold for $ 900,000 at the end of the fourth year. These machines will be depreciated straight-line to zero book value over its four-year life. Sales are projected to be 1,000 units per year; price per unit will be $ 8,000; variable cost per unit (i.e., average variable cost) will be $ 5,000; and fixed costs are estimated to be $ 1 million per year. This project also requires an initial investment in net working capital (NWC) of $ 500,000. The required rate of return (i.e., cost of capital) on the project is 9 % and the relevant tax rate is 35%. What are the NPV and IRR of the project? Should Phillips accept or reject the project? Please show your work.