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Please provide step by step calculations. Your firm is considering a new three-year project with unit sales expected to be 10,000 per year. They expect

Please provide step by step calculations.

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Your firm is considering a new three-year project with unit sales expected to be 10,000 per year. They expect the unit sale price to be $15 with variable costs accounting for $8.25 per unit. Fixed costs are estimated to be S15,500 per year. The project will require the purchase of a new piece of equipment which costs $150,000 with an additional $22,000 in shipping and installation costs. The equipment will be depreciated straight-line to zero over four years. Further, the project will require an additional investment in net working capital of $25,000. It is expected to have an estimated salvage value of $50,000 at the end of the project in three years. If the firm is in the 35% tax bracket and the cost of capital is 18%, is the project acceptable according to NPV and IRR? Justify your acceptance/rejection. a. b. C. d. Determine the amount of NCS for each year including the amount of the initial investment. Determine the amount of the annual depreciation and OCFs for each year. Determine the NCFs (C FFAs) for each year. Determine the NPV, IRR

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