Rogers Golf Company, a manufacturer of golf clubs, is considering a new project involving the Introduction of a new line of golf clubs (the Rocket). This new project is expected to last three years, and then, due to the fact that golf clubs have limited lives, it is expected to be terminated at such time. The cost of new equipment required for the new product (the Rocket) is $32,500,000, related shipping and installation is $500,000. The company has already incurred $325,000 for preliminary club designs. The company expects to incur $50,000 of employee training costs prior to the introduction of the new product (the Rocket) and while these training costs are directly related to the Rocket product, they are not associated with the new equipment and will not be capitalized and depreciated. Unit sales of the new product (the Rocket) are expected to be: 60,000, 90,000 and 65,000, respectively for years 1, 2 and 3. Average sales price per unit of the new product (the Rocket) is expected to be $800 in years 1 through 2 and drop to $750 in year 3. Average variable operating costs for the new product (the Rocket) are anticipated to be $475 per unit in year 1, and grow at Inflation thereafter. Fixed operating costs for the new product (the Rocket) are estimated to be $3,200,000 for year 1, and grow at inflation thereafter. The company's annual incremental marketing costs for the new Rocket product are estimated to be $250,000 for years 1-3. The marketing efforts and positive industry buzz associated with the introduction of the new product (the Rocket) is expected to have positive synergistic effects on the unit sales of one of the company's existing golf club lines (the Hammer) by 5,000, 3,000 and 2,000 units, respectively in years 1, 2 and 3. Average sales price per unit of this existing product (the Hammer) is expected to be $700 in years 1 through 3. Average variable operating costs for the existing product (the Hammer) are anticipated to be $400 per unit in years 1 through 3. There will be an initial working capital requirement of $200,000 to get production of the new product (the Rocket) started, and thereafter, the total investment in working capital is expected to equal 4 percent of the relevant sales dollars for each year. All working capital should be assumed to be liquidated at the termination of the project at the end of year 3. The straight-line depreciation method over a three year period with no salvage value should be assumed. The Inflation rate should be assumed to be 3% per year. The company's tax rate is 25%. Given the above information, determine the annual (Year 0 thru Year 3) Incremental free cash flows associated with this potential new project. Also, calculate the NPV and IRR on this cash flow for the project. The company's cost of capital is 12%