You have a company that produces action figure toys and you really would like to have a deal with Disney.You spent $150,000 for marketing research to identify most in-demand Marvel action figures and $75,000 to test the designs with focus groups.You estimate that your company can sell 1million action figures with a price tag of $15 each andthe variable cost (including Disney's brand royalty fees) of $9. The sales will start next year and end after year 3. Your company has some machinery that you could sell for $400,000 but now, you can will use it for this project and estimate that it will be worthless at the end of year 3. In addition, you will need to buy equipment for $3,200,000, which will be depreciated to zero on a straight-line basis over 5 years. You expect to sell it for $1,500,000 at the end of year 3.You will need to hire one additional employee to run the production, which will cost $90,000 annually for the next three years.Your companys current level of working capital is $400,000. The new product will require the working capital to increase to a level of $520,000 immediately, then to $670,000 in year 1. In year 2 the level will be $570,000, and finally in year 3 the level will return to $400,000. The discount rate you plan use for this project is 15%. The relevant tax rate is 21%. Do the capital budgeting analysis for this project and calculate its NPV.