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 $502,000. The company estimates that it will sell 759,000 units per year for $3.06 per unit and variable non-labor costs will be $1.03 per unit. Production will end after year 3. New equipment costing $1.16 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 $292,000. The new product will require the working capital to increase to a level of $383,000 immediately, then to $396,000 in year 1, in year 2 the level will be $341,000, and finally in year 3 the level will return to $292,000. Your tax rate is 21%. The discount rate for this project is 10.2%. Do the capital budgeting analysis for this project and calculate its NPV. Note: Assume that the equipment is put into use in year 1. According to the bonus depreciation schedule, depreciation in year I will be > 1,100,000. (Round to the nearest donar.) Depreciation in years 2 and 3 will be $ 0. (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Sales $ 2,322,540 880,440 A 3202980 - Cost of Goods Sold Gross Profit - Depreciation EBIT - Tax A Incremental Earnings + Depreciation A - Incremental Working Capital - Capital Investment Incremental Free Cash Flow A