Suppose you want to launch a new business. Starting the business would necessitate an initial equipment purchase of $6.75 million. Additionally, you have previously received a market analysis study from Marzofka Marketing that cost $120,000. You also have already paid a friend $10,000 to design your website and logo. You are projecting this project for the next 10 years and are using the MACRS 10 year depreciation schedule (fully depreciating the equipment according to the schedule). Your market analysis along with your own projections/requirements showed the following: In your first year you would sell 560,000 units The price in the 1st year would be $3.85 Your unit COGS would be 35% of the sales price Annual overhead would cost $425,000 You would require an initial net working capital (NWC) investment of $150,000 You assume a tax rate of 25% You also assume you will be able to sell the equipment for $600,000 at the end of the project in 10 years. Unit sales (after the first year) are expected to grow 8% per year You should also be able to increase prices by 2.5% each year Each year you will have to increase NWC by 5% of the expected change in sales (so NWC investment in year 1 is based on the expected change in sales from year 1 to year 2) All NWC investment is recovered at the end of the project Based on the risk, you need to make a 14% return on this project What is total cash flow in Year 0? Explain. Should you pursue this new business? Explain.