Solve A and B. Please show work.

1. Uber is considering a new project. You have the following information: Estimate life of the project is 3 years. Expect sales of $15,000,000 for the first year of the forecast with sales to grow by 25% and 10%, respectively, for years 2 & 3. Variable costs (COGS) are 60% of sales. Fixed costs (SG&A) are $2,000,000 per year. They require a machine that costs $11,000,000 and will be depreciated using MACRS under a 3-year convention (.3333/.4445/.1481/.0741) The tax rate is 21%. Interest expense is $1,000,000 per year. Initial net operating working capital is $1,500,000. Net operating working capital for years 1 and 2 is 10% of NEXT year sales. All net operating working capital will be returned at the end of year 3. . a. They decide to sell the machine at the end of year 3 for $2,500,000. Find the free cash flows for years 1, 2 and 3. b. The cost of capital is 10%. Find the net present value, internal rate of return and modified internal rate of return. Should the project be accepted