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Sticky Stack has been very profitable and now has time to upgrade some of their equipment. They are considering two projects to improve efficiency of the factory. Both projects will require Sticky Stack to initially invest $35,000. The expected cash flows for the two projects are as follows: Year 1 Year 2 Year 3 Total Project #1 $32,000 $22,500 $5,000 $59,000 Project #2 $7,500 $23,500 $28,000 $59,000 The discount rate is 12%. Calculate the NPV of each project. Type your dollar responses with no commas and no decimals (round up). For the discount factors, use 3 decimal places(rounded) .### Year After-Tax Cash 12% Discount Factor Present Values Flows 0 (35,000) +A +A NPV for Project #1Year After-Tax Cash 12% Discount Factor Present Values Flows 0 (35,000) tA +A NPV for Project #2 The project to be recommended is (Type Project #1 or Project #2)Flat Stitch needs three different pieces of material in order to produce one jersey. Currently the material is made by Flat Stitch. During the monh of March, Flat Stich produced 4,000 pieces of material. The recorded the following costs: Direct Materials $4.00 Direct Labor $1.50 Manufacturing Overhead $1.30 The manufacturing overhead is made up of $1.00 per unit of variable overhead and $.30 of allocated fixed costs. Flat Stitch determined that they will need to supply 6,000 pieces of material for next years jerseys. Jersey Mike's has offered to sell Flat Stich the material that they need for their jerseys for $7 per unit. If Flat Stich decides to take Jersey Mike's offer, all of the variable costs, and $1200 of the fixed costs will be avoided. Should Flat Stitch accept or decline the offer from Jersey Mike's? Why or why not? Explain your answer and your calculation.