Please provide your answer through calculations to the problem, by presenting the formulas you use, the calculations, the result and its interpretation. You want to launch a new product, which would involve the use of a new equipment costing $1,000,000. Annual sales of the new product would be 3,000 units, selling at $100 per unit. Unit costs would be as follows: Direct materials ($12 per unit) . Direct labour (4 hours at $10 per hour) . Fixed costs including depreciation ($15) The project would have a five-year life, after which the new machine would have a net residual value of $600,000. Working capital requirements would be $7,000 in the first year, rising to $25,000 in the second year and remaining at this level until the end of the project, when it will be recovered. The company cost of capital is 10%. Please ignore taxes. Please decide if you should make this new product under these conditions, if yes why and if no what can you do to turn it efficient