Question 56 (0.5 points) Hawkeye Innovations is considering developing a new type of mouse trap. They have made the following estimates regarding the development of the new product: The life of the project is 7 years The project will require additional equipment that will cost $21,000. None of the equipment will have any salvage value. Sales are expected to be 10,000 units per year at $4.50 per unit Variable costs are expected to be $2.60 per unit Fixed costs are expected to be $12,000 per year The annual Depreciation expense would be $3,000 Additional Net Working Capital will be needed in Year O in the amount of $8,000. 60% of this will be recovered in Year 7 The company's tax rate is 34% The Required Rate of Return on the project is 10% If the company felt the risk of the project was such that the Required Rate of Return should be increased to 11% instead of 10%, what would be the correct decision regarding pursuing the project? Accept Reject