11. Project A involves a new type of graphite composite in-line skate wheel. We think we can sell 6,000 units per year at a price of $1,000 each. Variable costs will run about $400 per unit, and the product should have a three-year life. costs for the project will run $450,000 per year. Further, we will need to invest a total of This equipment will be depreciated straight-line over three Fixed $600,000 in manufacturing equipment. year. The cost of capital is 28 percent. Tax rate is 34 percent. (1) Calculate the depreciation for each year. (10) (2) Prepare an income statement. (10) (3) Calculate the operating cash flow for each year. (10) (4) Calculate the total cash flow for year 0 to year 3. (10) (5) Calculate the NPV. Should we undertake the project