Please answer the 7-year MACRS schedule, do a capital budgeting analysis, and then also calculate its NVP.

Your company has been doing well, reaching $1.18 million in earnings, and is considering launching a new product. Designing the new product has already cost $474,000. The company estimates that it will sell 777,000 units per year for $2.95 per unit and variable non-labor costs will be $1.05 per unit. Production will end after year 3. New equipment costing $1.12 million will be required. The equipment will be depreciated to zero using the 7-year MACRS schedule. You plan to sell the equipment for book value at the end of year 3 . Your current level of working capital is $310,000. The new product will require the working capital to increase to a level of $372,000 immediately, then to $401,000 in year 1 , in year 2 the level will be $355,000, and finally in year 3 the level will return to $310,000. Your tax rate is 21%. The discount rate for this project is 10.5%. Do the capital budgeting analysis for this project and calculate its NPV. Note: Assume that the equipment is put into use in year 1. Design already happened and is (irrelevant). (Select from the drop-down menu.) According to the 7-year MACRS schedule, depreciation in year 1 will be $. (Round to the nearest dollar.) Your company has been doing well, reaching $1.18 million in earnings, and is considering launching a new product. Designing the new product has already cost $474,000. The company estimates that it will sell 777,000 units per year for $2.95 per unit and variable non-labor costs will be $1.05 per unit. Production will end after year 3. New equipment costing $1.12 million will be required. The equipment will be depreciated to zero using the 7-year MACRS schedule. You plan to sell the equipment for book value at the end of year 3 . Your current level of working capital is $310,000. The new product will require the working capital to increase to a level of $372,000 immediately, then to $401,000 in year 1 , in year 2 the level will be $355,000, and finally in year 3 the level will return to $310,000. Your tax rate is 21%. The discount rate for this project is 10.5%. Do the capital budgeting analysis for this project and calculate its NPV. Note: Assume that the equipment is put into use in year 1. Design already happened and is (irrelevant). (Select from the drop-down menu.) According to the 7-year MACRS schedule, depreciation in year 1 will be $. (Round to the nearest dollar.)