Estimating Capital Budgeting Cash Flows Problem Intermediate Financial Management Dan Salandro Chromeworld has developed a new process that would produce mini units capable of chrome or copper plating parts for motorcycles. The project would cost $27 million at Year 0 to buy the equipment necessary to manufacture the mini units. The project would require net working capital at the beginning of each year in an amount equal to 13%% of the year's projected sales changes; for example, NWC . = 13%% (Sales1-Sales0). The mini units would sell for $35,000 per unit, and Chromeworld believes that variable costs would amount to $14,000 per unit. After Year 1. the sales price and variable costs will increase at the inflation rate of 316. The company's non-variable costs would be $1.75 million at Year 1 and would increase with inflation. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the projects returns are expected to be highly correlated with returns on the firm's otherassets The firm believes it could sell 600 units per year. The equipment would be depreciated over a 3-year period, using MACRS rates (3306,45%% ,15%% and 7%6). The estimated market value of the project at the end of the project's 4-year life is $180,000. There will also be a termination cost of $1.25 million to shut down the project in compliance with all environmental regulations. Chromeworlds' federal-plus-state tax rate is 3806. Its cost of capital is 1116 for average-risk projects. Find the project's NPV, IRR, and MIRR