Your company is considering an expansion into a new product area. The company has collected the following information about the proposed product. - The project has an anticipated economic life of 5 years. - The company will have to purchase a new machine to produce the product. The machine has an up.front cost (Year 0) of $3,000,000. - The machine will be depreciated on a 3-Vear MACR5-life basis (depreciation will be taken in Years 14 and depreciation rates are: Year 1 - 33\% Year 2=45% Year 3=15% and Year 4= - The company anticipates that the machine will last for at least five years, and that after five years, the machine will be sold for $400000 (pre-tax). - If the company goes ahead with the project, it wall have an effeck on the company's net operating working capital. At the outset, Year O. current assets will increase by $450.000, while accounts payable will increase by $200,000 and accrusls will increase by $150,000. At Year 5 . the net operating working cipital will be recovered after the project is completed. - The project is expected to produce revenues of $2.200,000 the first year, $2.500.000 the second and third years, $2.000000 the fourti year, and $1,000,000 the final year. - Operating costs (exclading depreciationi) arf expected to be equal to 50 percent of sales revenue. - The company's interest expense each year will he $120000 - Because of synergies. the new project is expected to increase the aiter-tax cash flows of the company's existing products by $40,000 a year (years 1-5) and this is considered to be incremental to this particular project. - The companys overall WACC is 5 percent However. the proposed project is more risky than the average project, leading the firm to use a Wace of io percent for this project. - The company's tax rate is 40 percent Determine the NPV for this project