You must evaluate the purchase of a spectrometer for a firm. The base price is $140,000 and it would cost another $30,000 to modify the equipment for special use by the firm. The equipment will be depreciated to zero value over the 3 years using prime cost (straight line) method. The machine would be sold after 3 years for $60,000. The machine would require a $8,500 increase in net working capital and fully recover at the end of its 3-year life. The equipment should save the firm $50,000 per year in before- tax labor costs. Below shows the forecasted sales revenues, variable cost and fixed cost. Year 1 4,000 $4 Sales quantity (units) Selling price per unit Fixed cost of production (per year) Variable cost of production (per unit) The marginal tax rate is 40% and the discount rate is 10%. ii. $1,500 $1.1 Year 2 5,000 $4 $1,500 $1.1 i. What is the net present value (NPV) of the proposed project? Year 3 5,500 $4 $1,500 $1.1 (18 marks) Advise should the project be accepted based on your answer in part (i)? (2 marks)