You have been asked to evaluate the worthiness of Fauci's new project, production of a test kit for all viruses. You estimate the project will have a life of 4 years. You also estimate the project will generate the following before-tax sales and costs: Year Sales Costs 1 $4,000,000 $3,000,000 2 $5,000,000 $3,500,000 3 $6,000,000 $4,500,000 4 $6,000,000 $5,000,000 The project requires an initial investment in new equipment equal to $3,600,000 million, which will be depreciated straight-line to zero over the 4-year life of the equipment (Depreciation is $900,000 per year). At the end of the project's life, the equipment can be sold for $800,000, before taxes. The initial net working capital investment at t=0 is $500,000, which will be fully recovered at the end of the project. The tax rate for the firm is 25%, and the required return on the project is 12%. a) What is the project's NPV? b) Should the firm pursue the project