You are considering the purchase of a machine with an expected life of 3 years. It costs $800,000 and belongs to class 10 (CCA rate = 30%). Its estimated market value at the end of 3 years equals $125,000. The number of products we expect to sell over the next 3 years is 20,000, 25,000 and 20,000 in years 1, 2 and 3, respectively. Expected price equals $100 per unit, while annual production costs consist of $50,000 in fixed costs and an additional $80 per unit in variable costs. Working capital required equals $30,000 in year 0, and 10% of sales in years 1 through 3. Working capital will be recaptured at the end of year 3. The corporate tax rate is 40%, and the required rate of return for such projects equals 10%. Please answer the following questions with detailed calculation in your final report: (HALF-YEAR RULE APPLIES FOR YR 1 CCA)

(1) Show your calculation of the project's CCA schedule from year 1 to year 3. (10 points)

(2) What are the net working capital and changes in net working capital for year 0 to year 3? (10 points)

(3) What are the incremental cash flows of this project in year 0, year 1, year 2, and year 3? (10 points)

(4) What is the project's NPV if the cost of capital for this project is 10%? (10 points)

(5) What is the project's IRR? (10 points)

(6) List one situation where the NPV and IRR rules may result in different conclusions. (10 points)

(7) What is the project's MIRR? (10 points)

(8) What is the project's PI? (10 points)

(9) Should you take this project, and why? (List as many reasons as possible based on previous analysis) (20 points)

I only need questions 1-4 answered YOU DO NOT NEED TO DO anything beyond 4. Will give a thumbs up. Thank you