Your company has been doing well, reaching $1.12 million in earnings, and is considering launching a new product. Designing the new product has already cost $463,000. The company estimates that it will sell 789,000 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 $1.19 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 $308,000. The new product will require the working capital to increase to a level of $376,000 immediately, then to $399,000 in year 1 , in year 2 the level will be $347,000, and finally in year 3 the level will return to $308,000. Your tax rate is 21%. The discount rate for this project is 9.9%. 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 (irrelevant). (Select from the drop-down menu.) According to the 7-year MACRS schedule, depreciation in year 1 will be $ (Round to the nearest dollar.)