Your company has been doing well, reaching $$1\mathrm{.}13$ million in earnings, and is considering launching a new product. Designing the new product has already cost $$451,000.$ The company estimates

that it will sell $805,000$ units per year for $$3\mathrm{.}09$ per unit and variable non$-$labor costs will be $$1\mathrm{.}19$ per unit. Production will end after year $3.$ New equipment costing $$1\mathrm{.}13$ 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 $$306,000.$ The

new product will require the working capital to increase to a level of $$370,000$ immediately, then to $$409,000$ in year $1,$ in year $2$ the level will be $$351,000,$ and finally in year $3$ the level will return to

$$306,000.$ Your tax rate is $30\%.$ The discount rate for this project is $9\mathrm{.}8\%.$ Do the capital budgeting analysis for this project and calculate its NPV$.$

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

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.$)$