Your company has been doing well, reaching $1.16 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 758,000 units per year for $3.06 per unit and variable non-labor costs will be $1.14 per unit. Production will end after year 3. New equipment costing $1.16 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 $290,000. The new product will require the working capital to increase to a level of $372,000 immediately, then to $394,000 in year 1, $340,000 in year 2, and finally return to $290.000. Your tax rate is 35%. 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 Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Year 3 Sales Cost of Goods Sold Gross Profit Depreciation EBIT Tax Incremental Earnings Depreciation Incremental Working Capital Capital Investment 109,000 1,210,000 The NPV of the project is n FCF NPV