Schroeder Electronics is considering a 3-year project which will require the purchase of $5 million in new equipment. The equipment will be depreciated using a 3-year MACRS as follows: 40%, 30%, 20%, and 10% for years 1-4. Schroeder's expects to sell the equipment at the end of the project for 30% of its original cost. The company also expects to make use of an old plant valued at $2 million today and $2.5 million after-taxes at the end of the project. Annual sales from this project are estimated at $4 million in the first year, and increase by $0.5M every year thereafter. The total cost of goods sold is expected to be 40% of sales. Net working capital equal to 10% of sales will be required to support the project annually. All of the net working capital will be recouped at the end of the project. Schroeder desires a 12% rate of return on this project. The tax rate is 40%. a. What are the annual net operating profits after taxes (NOPAT) from this project? b. What are the cash flows due to the NOWC from this project? c. What is the annual total net operating capital (TNOC) from this project? d. What are the NPV and IRR of this project?