Problem (15 Points) The ABC Company is planning to develop a new product. They have already paid $120,000 to an outside consulting firm to determine market needs and the product that best addresses these needs. The current projections suggest the following: - Projected Sales of $815,000 - Fixed Costs of $196,000 Variable Cost equal to 20% of sales Special equipment necessary to support production will cost $865,000 and will be depreciated over the 4-year estimated life of the product using the straight-line method. The firm will invest $50,000 in working capital to support the new product. The firm's tax rate is 40% and the required rate of return is 13% Required: Calculate the project's NPV Calculate the project's IRR Should the firm accept this project? Ans: NPV IRR Accept or Reject (circle your decision)