You are considering the introduction of a new fadproduct, gidgets, which will only be on the marketfor 5 years. Last year, you spent $20,000 on amarket study to determine the appropriate pricewould be $5 per gidget. You expect sales to be10,000 units in year 1 and grow by 2,000 units eachyear after. Costs are expected to be 20% of sales,and the firms marginal tax rate is 40%. In addition,you must purchase a gidget manufacturingmachine for $100,000, which is depreciated usingMACRS (3-year class), and worthless at the end ofthe project. Due to an increase in inventories, networking capital is expected to increase by $15,000. If the required return on this project is 12%, shouldyou introduce the new product?

May someone post a detailed answer to this please?