Capital Budgeting Decision for Proiect GRIZ This projectggarohres a new type of widget. We think we can sell 6,000 units of the widget per year at a...

If someone could help, that'd be great!

Capital Budgeting Decision for Proiect GRIZ This projectggarohres a new type of widget. We think we can sell 6,000 units of the widget peryear at a price of 9;” each. Variable costs will run about $400 per unit and the product should have a four-year life. Fixed costs for the project will run $450,000 per year and we will need to invest a total of $1, 200 000m in manufacturing equipment. The equipment will be depreciated using MACRS over seven years. In year four, the equipment will be worth half of what we paid for it. We will invest $1,150,000 in net working capital at the start. After that, net working capitalrequirements will be 25% of sales. Assume a 34% tax rate. The MACRS Table is below: MACRS Percentage14.29 9624.49 96 17-49 9612.49 96 Should we undertake the project? HINT: Prepare a pro forma income statement for each year. Then calculate OCF. Draw this on a timeline. Then calculate NPV assuming a 2896 required return.