You are evaluating a project for a superior pickleball paddle. The company has spent $65,000 on pickleball market research. You estimate the sales price for a superior paddle to be $200 per unit and sales volume to be 1,000 units in year 1; 1,200 units in year 2; and 1,100 units in year 3. The project has a three-year life. Variable costs amount to $50 per unit and fixed costs are $75,000 per year. The project requires manufacturing equipment with a cost of $140,000; Installation of the equipment will cost an additional $10,000. The company can use bonus depreciation. The salvage value of the equipment at the end of year 3 is expected to be $5,000. It is expected that sales of the superior pickleball paddle will decrease sales of existing paddles by $20,000 per year. NWC levels (balances) at the beginning of each year will equal 20 percent of the projected sales during the coming year; for example, year 0 NWC equals 20% of year 1 sales. If the company invests in the project, it will need to get a loan that will require interest payments of $9,000 each year. The tax rate is 21 percent and the cost of capital on the project is 10 percent. a. Prepare a schedule that includes subtotals for EBIT, net income, OCF and Free Cash flows. b. Calculate NPV, IRR, and payback. For each calculation state whether to accept or reject the project. Assume managements maximum payback period is set at 2.75 years.