Company ABC has been doing well, reaching $1.2 million in sales with their current product. Currently, ABC's costs of production are 50% of sales. Absence of any major change, ABC expects the sales of its current product to stay the same in the foreseeable future. ABC is also considering launching a new product. Designing the new product has already cost $500,000 in the past two years. The company estimates that it will sell $2.5 million of the new product for the next three years. Production of the new product will end after that. The production cost is expected to be 45% of sales. Introduction of the new product pushes down the prices of the current products which will reduce the sales of the current product by 25%. In order to produce the new product, ABC needs to invest $750,000 in new equipment. The equipment will be depreciated to zero using 3-year straight line depreciation. The current level of net working capital is $294,000, which is the same as the year before. The new product will require the net working capital to be $405000, $352000 and $294000 in year 1, 2 and 3, respectively. Tax rate is 35% and the project's cost of capital is 10%. Do the capital budgeting analysis for this project and calculate its NPV. (You need to have a full table showing all the items that affect your free cash flows.)