Your company has been doing well, reaching $$1\mathrm{.}18$ million in earnings, and is considering launching a new product. Designing the new product has already cost $$505,000.$ The company estimates

that it will sell $815,000$ units per year for $$2\mathrm{.}91$ per unit and variable non$-$labor costs will be $$1\mathrm{.}16$ per unit. Production will end after year $3.$ New equipment costing $$1\mathrm{.}18$ million will be required. The

equipment will be depreciated to zero using the $7-$year MACRS schedule. You plan to sell the equipment for book value at the end of year $3.$ Your current level of working capital is $$301,000.$ The

new product will require the working capital to increase to a level of $$384,000$ immediately, then to $$406,000$ in year $1,$ in year $2$ the level will be $$360,000,$ and finally in year $3$ the level will return to

$$301,000.$ Your tax rate is $21\%.$ The discount rate for this project is $10\mathrm{.}2\%.$ Do the capital budgeting analysis for this project and calculate its NPV$.$

Note: Assume that the equipment is put into use in year $1.$

Design already happened and is $($irrelevant$).($Select from the drop$-$down menu.$)$

According to the $7-$year MACRS schedule, depreciation in year $1$ will be $$,($Round to the nearest dollar.$)$

Depreciation in year $2$ will be $$,.($Round to the nearest dollar.$)$

Depreciation in year $3$ will be $$.($Round to the nearest dollar.$)$

Complete the capital budgeting analysis for this project below: $($Round to the nearest dollar.$)$

The NPV of the project is $$,($Round to the nearest dollar.$)$