Your company has been doing well, reaching $ 1 million in earnings, and is considering launching a new product. Designing the new product has already cost $ 500 comma 000 . The company estimates that it will sell 800 comma 000 units per year for$ 3.00 per unit and variable non-labor costs will be $ 1.00 per unit. Production will end after year 3 . New equipment costing$ 1 million will be required. The equipment will be depreciated using 100% bonus depreciation under the 2017 TCJA. You think the equipment will be obsolete at the end of year 3 and plan to scrap it. Your current level of working capital is $ 300 comma 000 . The new product will require the working capital to increase to a level of $ 380 comma 000 immediately, then to $ 400 comma 000 in year 1, in year 2 the level will be $ 350 comma 000 , and finally in year 3 the level will return to $ 300 comma 000 . Your tax rate is 21 % . The discount rate for this project is 10 % . 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 fixed variable sunk (irrelevant).(Select from the drop-down menu.) According to the bonus depreciation schedule, depreciation in year 1 will be $enter your response here . (Round to the nearest dollar.) Depreciation in years 2 and 3 will be $enter your response here . (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below:(Round to the nearest dollar.) Year 0 Sales $ - Cost of Goods Sold $ Gross Profit $ - Depreciation $ EBIT $ - Tax $ Incremental Earnings $ + Depreciation $ - Incremental Working Capital $ - Capital Investment $ Incremental Free Cash Flow $ Year 1 $ $ $ $ $ $ $ $ $ $ $ Year 2 $ $ $ $ $ $ $ $ $ $ $ Year 3 $ $ $ $ $ $ $ $ $ $ $

The NPV of the project is $enter your response here . (Round to the nearest dollar.).