Problems 3. (15%) Your company is considering launching a new product. Designing the new product has already cost $500,000. The company estimates that it will sell 750,000 units per year of $3.2 per unit and variable non-labor costs will be Si per unit. Production will end after year 3. New equipment costing St 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 $300,000. The new product will require the working capital to increase to a level of $380,000 immediately, then to $400,000 in year 1. in year 2 the level will be $350,000, and finally in year 3 the level will return to $300,000. Your tax rate is 30%. The discount rate for this project is 11%. Do the capital budgeting analysis for this project and calculate its NPV