Tech Pro Inc. is investigating the feasibility of introducing a new high tech baseball bat. Based on research, conducted by the firm, unit sales are projected to be as follows: Year Unit Sales 6,000 7,000 8,000 9,000 2 3 4 The new bat would be priced at $200.00 per unit. The variable cost per unit will be $1 0.00 and fixed cost will be $20,000 per year. The new bat will require $15, 000 in new net working capital at the start. 700/000.0o It will cost $700/000to buy the equipment necessary to begin production. In addition, the equipment will cost $20,000.00 to setup. The equipment will be classified as three year MACRS property. The equipment will have a salvage value of $5,000 at the end of the four years. The firms marginal tax rate is 35% and its' weighted average cost of capital is 10%. Using the NPV method of analysis, determine whether the firm should undertake the proposed project Why or why not? Bonus, what is the IRR on the proposed project? Additional information: Depreciation Table 3 Year Property Year 1 3333 4444 1482 20441 2 3 4