The Fluffy Feather sells customized handbags. Currently, it sells 5,000 annually of a high-priced line of handbags for $250 each, and 10,000 annually of a low-priced line of handbags for $55 each. The firm is considering adding a medium-priced line of handbags that will be kept for four years. It hopes to sell 7,000 of the medium-priced handbags at $125 each in the first year. After that, sales of the new line will increase by 15% per year. An independent consultant has determined that if the new line is introduced, sales of its existing high-priced handbags will most likely decline by 1,250 per year while the sales of its low-priced handbags will probably increase by 500 per year. Variable costs for this new line will run about $20 per bag, and fixed costs for the new line will run $50,000 per year. To build the new line, the company will expand on some land that it currently owns. The initial cost of the land was $105,500 and it is currently valued at $210,000. The company needs to spend an additional of $20,000 to prepare the land for the new line. Additionally, the company has some unused tools that it currently owns valued at $20,000 that could be used for this new line if $10,200 is spent for modifications. Further, the company will need to invest a total of $450,000 in new manufacturing equipment, which is seven-year MACRS property for tax purposes. In four years, the equipment will be worth about one fourth of what we paid for it. At the beginning of the project, cash and cash equivalents will increase by 50,000, inventories will increase by $42,000, and accounts payable will increase by $42,200. After that, net working capital requirements will be 10 percent of the new line sales every year. All investments in net working capital will be recovered at the end of the project. The required rate of return is 14 percent and the tax rate is 21 percent. What is the projects PI? Should the project be accepted based on PI? (30 points)