Your company has been doing well, reaching $$1$ million in earnings, and is considering launching a new product. Designing the new product has already cost $$500,000.$ The company estimates that it will sell $800,000$ units per year for $$3$ per unit and variable non$-$labor costs will be $$1$ per unit. Production will end after year $3.$ New equipment costing $$1$ million will be required. The equipment will be depreciated to zero using the $7-$year MACRS schedule. You plan to sell the equipment for book value at the end of year $3.$ Your current level of working capital is $$300,000.$ The new product will require the working capital to increase to a level of $$380,000$ immediately, then to $$400,000$ in year $1,$ in year $2$ the level will be $$350,000,$ and finally in year $3$ the level will return to $$300,000.$ 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$.$