Your firm is considering a project to produce new items. The project will require new equipment at a cost of $150,000. Shipping and installation will be $45,000. The equipment will be depreciated on a straight-line basis to a book value of 0 over the projects three year life. At the end of the project, the equipment will be sold for $40,000. Initially, the project requires an increase in inventory of $5,000. Changes in working capital will be recouped at the end of the project. The whatchamacallits will be sold for $10 each and expected sales the first year are 50,000 units. Sales are then expected to increase by 10% each year. The project would require variable costs of 20% of sales and annual fixed costs of $210,000. The tax rate is 35% and the cost of capital is 12%. Calculate the appropriate cash flows and NPV. Should the project be pursued?