More Practice problems for Chapter $12$: $1.$ Old rule: Suppose we are considering the Shark Tank Project with the following information Estimated sales: $50,000$ cans$/$year$,$ Sales Price per can: $\backslash$$$4$ Cost per can: $\backslash (\backslash$$ $2\mathrm{.}50\backslash )$ Fixed costs: $\backslash$$$17,430/$year The estimated life of the project is $3$ years Initial equipment cost: $\backslash (\backslash$$ $90,000\backslash ).$ The equipment will be straight$-$line depreciated over a $3-$year life. The equipment cannot be sold at the end of its life. Change in NWC: $\backslash (\backslash$$ $20,000\backslash )$; the full amount will be recovered at the end of the project's life. Tax rate: $\backslash (21\backslash \%\backslash )$ Cost of capital: $\backslash (20\backslash \%\backslash ).$ Should we accept this project?