Pointless Luxuries Inc. (PLI) produces unusual gifts targeted at wealthy consumers. The firm is analyzing the possibility of introducing a new device designed to attach to the color of a cat or dog. The device emits sonic waves that neutralize airplane engine noise, so that pets traveling with their owners can enjoy a more peaceful ride. PLI estimates that developing this product will require up-front capital expenditures of $9 million. These costs will be depreciated on a MACRS 5-year schedule. PLI believes that it can sell the product initially for $250. The selling price will increase to $260 in years 2 and 3 , before falling to $245 and $240 in years 4 and 5 , respectively. After five years the company will withdraw the product from the market and replace it with something else. Upon withdrawal, the firm believes that the salvage value of the equipment would be $625,000. Variable costs are $135 per unit. PLI forecasts sales volume of 20,000 units in the first year, with subsequent increases of 25\% (year 2), 20\% (year 3), 20\% (year 4), and 15\% (year 5 ). The firm expects operating expenses, other than depreciation, to be $220,000 for all five years. PLI is currently in the 34% tax bracket. The working capital needs are the following... Hint...These represent the need, not the spend. Pointless Luxuries Inc. currently has a $19.60 stock price and 295,800,000 shares outstanding. In addition, the firm currently has a Beta of 1.75 and has eight different debt issues outstanding. The details of those debt issues are presented below. The relevant Treasury yield is 1.25%, and the anticipated market risk premium is 8.00%. Calculate the NPV, IRR, and PI for the project. Create a NPV matrix assuming a plus or minus 5% adjustment to the following four inputs: -Purchase Price of Capital Asset -Salvage Value -Variable Cost