Phone Home, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated as a MACRS 5-year asset. When the project ends in year four it will have a market value of $225,000. The project requires an initial investment in net working capital of $330,000, all of which will be recovered at the end of the project. The project is estimated to generate $2, 640,000 in annual sales, with costs of $1, 056,000 per year. The tax rate is 33 percent and the required return for the project is 15 percent. Set up a correct pro-forma statement to value the project Correctly value the project using NPV or IRR Argue why the company should accept or not accept the project