The production line produces a product which currently has annual sales of $1,000,000 and has a contribution to the business beyond ingredients of $500,000 Your line is currently operating at full standard capacity You are putting in new equipment which will make the line more efficient and last for 10 years The equipment will increase the capacity of the line by 30%. - so add capability to produce $300,000 more per year and will eliminate 3 positions of manual labor when fully operational the second year A manual position of labor costs $30000 per year with benefits A 6 month supply of ingredients is kept at all times It is expected that the learning curve will result in zero increased capacity in year 1 but the full 30% in year 2 The equipment will costs $600000 engineering and installation will cost $100000 Sales will grow at a rate so all production can be sold Advertising and promotion to get that growth will cost $50,000 per year The company has a WACC of 15% but uses a hurdle rate of 18% for projects of this risk type. OUTLINE THE CASH FLOWS IN THE CHART BELOW EVALUATE THE INVESTMENT WITH PAYBACK, IRR and NPV