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 $452,000. The company estimates that it will sell 778,000 units per year for $3.08 per unit and variable non-labor costs will be $1.17 per unit. Production will end after year 3. New equipment costing $1.12 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 $295,000. The new product will require the working capital to increase to a level of $372,000 immediately, then to $399,000 in year 1, in year 2 the level will be $348,000, and finally in year 3 the level will return to $295,000. Your tax rate is 21%. The discount rate for this project is 9.6%. 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 sunk (irrelevant). (Select from the drop-down menu.) According to the bonus depreciation schedule, depreciation in year will be $ (Round to the nearest dollar.)