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 $460,000. The company estimates that it will sell 750,000 units per year for $3.02 per unit and variable non-labor costs will be $1.08 per unit. Production will end after year . New equipment costing $1.02 million will be required. The equipment will be depreciated 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 $299,000. The new product will require the working capital to increase to a level of $385,000 immediately, then to $407,000 in year 1, in year 2 the level will be $354,000, and finally in year 3 the level will return to $299,000. Your tax rate is 21%. The discount rate for this project is 10.1%. Do the capital budgeting analysis for this project and calculate its NPV. Note: Assume that the equipment is put into use in year 1. Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Sales - Cost of Goods Sold Gross Profit - Depreciation EBIT - Tax Incremental Earnings + Depreciation - Incremental Working Capital - Capital Investment Incremental Free Cash Flow $ GA 69 GA GA 69 69 GA GA GA E9A9 69 69 E9A Year 3