Your firm, Country Furniture, Inc., is thinking about replacing equipment in its production facilities. In considering the replacement, you obtained the following information: The expansion will require the company to purchase today (t = 0) $5 million of new equipment. An additional $200,000 in installation charges will be required. The equipment will be depreciated as MACRS 3-year property over the following four years at the following rates: 7% t=1 33% t = 2 45% t-3 15% t=4 The expansion will require the company to increase its net operating working capital by $150,000 today (t = 0). This net operating working capital will be recovered at the end of the project's 5-year economic life. The old equipment is fully depreciated (Book Value = $0) and can be sold for $45,000 . The new equipment is expected to have a salvage value of $30,000 at the end of its 5-year economic life. The company's operating costs, excluding depreciation, are expected to reflect a decrease of $75,000 per year for each year the new equipment is in operation. The new equipment will increase the company's sales. The projected increases are as follows: Year 1: $3.0 million Year 2: 3.5 million Year 3: 2.5 million Year 4: 1.5 million Year 5: 1.0 million The new equipment will increase the company's sales. The projected increases are as follows: Year 1: $3.0 million Year 2: 3.5 million Year 3: 2.5 million Year 4: 1.5 million Year 5: 1.0 million . The required return for the project is 10%. The company's tax rate is 40%. a. Forecast the NINV, NCFs and Terminal Value