The company's marketing department has decided on a single compromise length of coolers of 52 inches with a width of 12 inches and height of 14 inches. The special narrow model cooler will be called the "Thinman". The initial unit price per cooler is set at $465. The cost accounting team has estimated the variable costs per unit at $355 for the first year of production. Selling and Administrative expense for the project is independent of the level of sales, and is estimated at $595,000 for the first year of the project. Net Working Capital requirements for the project will be 6% of dollar sales in the following period. The marketing research suggests that competitors would be unable to offer a comparable product for two years. Thereafter, competition is expected to cause a sharp drop-off in units sold and the company will surrender the niche and end production after four years. The team expects to be able to increase the retail price by 3% in year two, but by only 1% for year three and 0% in year four. Meanwhile all expenses are expected to rise 4% per year throughout the project. The marketing team's forecast of unit sales for each year of the project are presented in the table below.

Year 1 2 3 4

Units 10,000 14,000 6,000 3,200

Additional machinery and equipment for the project will have a total depreciable cost of $682,000. Shipping for the fixed assets will be $10,000. Installation and setup of the new machinery and equipment will be $20,000. The fixed assets associated with this project have a 5-year MACRS class life. It is expected that the fixed assets will be sold at the end of the project for $84,000. If the firm has a WACC of 10% and a tax rate of 21%, should the project be undertaken? What's the project's NPV, IRR, and Payback.