Your company has been doing well, reaching $1.08 million in earnings, and is considering launching a new product. Designing the new product has already cost $508,000. The company estimates that it will sell 835,000 units per year for $3.07 per unit and variable non-labor costs will be $1.16 per unit. Production will end after year 3 . New equipment costing $1.11 million will be required. The equipment will be depreciated to zero using the 7y 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 $305,000. The new product will require the working capital to increase to a level of $376,000 immediately, then to $406,000 in year 1 , in year 2 the level will be $354,000, and finally in year 3 the level will return to $305,000. 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 NP/ Note: Assume that the equipment is put into use in year 1. Design already happened and is (irrelevant). (Select from the drop-down menu.)