This question: 1 point(s) pos After spending $9.900 on client-development, you have just been offered a big production contract by a new client. The contract will add $207,000 to your revenues for each of the next five year to make the additional product. You will have to use some existing equipment and buy new equipment as well The existing equipment is fully depreciated, but could be sold for $48,00 worthless at the end of the project. You will buy new equipment valued at $27,000 and use the 5-year MACRS schedule to depreciate it. It will be worthless at the end of the project. Your c per year. Since she is busy with ongoing projects, you are planning to hire an assistant at $42,000 per year to help with the expansion. You will have to immediately increase your inventory $20,000 at the end of the project Your company's tax rate is 21% and your discount rate is 15.4% What is the NPV of the contract? (Note: Assume that the equipment is put into use in ye Calculate the free cash flows below for years 0 through 2 (Round to the nearest dollar) Year 0 Year 1 Year 2 Sales $ $ -Cost of Goods Sold Gross Profit -Annual Cost Depreciation 1 EBIT Tax Incremental Earnings + Depreciation incremental Working Capital- $ $ au have just been offered a big production contract by a new client. The contract will add $207,000 to your revenues for each of the next five years and it will cost you $103,000 per e to use some existing equipment and buy new equipment as well. The existing equipment is fully depreciated, but could be sold for $40,000 now If you use it in the project, it will be new equipment valued at $27,000 and use the 5-year MACRS schedule to depreciate it. It will be worthless at the end of the project. Your current production manager ourns $76,000 m, you are planning to hire an assistant at $42.000 per year to help with the expansion You will have to immediately increase your inventory from $20,000 to $30,000, it will return to 's tax rate is 21% and your discount rate is 15.4% What is the NPV of the contract? (Note Assume that the equipment is put into use in year 1.) through 2 (Round to the nearest dollar) Year 1 ro Year 2 S Next