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 $3.00 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 produi e working capite to increase to a lever ,000 mmediately, then to $400,00D n ye working capital is $300,000. The new the level will be S350,000, and finally in year 3 the level will retum to S300,000. Your culate its NPV o the capital budgeting analysis for this project and o Note: Assume that the equipment is put into use in year 1. (irrelevant). (Select from the drop-down menu.) Design already happened and is According to the bonus depreciation schedule, depreciation in year 1 will be $(Round the nearest dollar.) Depreciation in years 2 and 3 will be $ (Round the nearest dollar.) Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 1 Year 2 Year 0 Year 3 S Sales Cost of Goods Sold Gross Profit S S S $ - Depreciation S S EBIT - Tax S Incremental Earnings $ S $ Depreciation - Incremental Working Capital S $ -Capital Investment Incremental Free Cash Flow The NPV of the project is S (Round to the nearest dollar.)