Question 3 Your tennis company is contemplating acquiring a new machine to produce tennis rackets. The price of the machine is $200,000, and is expected to last 6 years (use straight-line depreciation to zero salvage value). The machine will be able to produce 5,000 tennis rackets each year. The price of a tennis racket is $175 today and is expected to rise by 5% each year. The material used to produce a tennis racket costs $100, with the material cost expected to rise by 3% each year. You will need to hire a worker to operate the machine, with an annual salary of $40,000 in the first year. You expect to raise the salary of the worker by 2% every year. You figure that for your calculations you need to use 7% discount rate. The relevant tax rate is 35%. What is the NPV and the IRR of the project? Should the project be accepted (Explain)