Problem $2,50$ points. The Victoria Corporation, a firm in the $21$ percent marginal tax bracket with a $15$ percent required rate of return or cost of capital, is considering a new project. This is a growth project that involves the introduction of a new product. The project is expected to last $5$ years and then be terminated. No salvage value at the end of year $5.$

There will be an initial $($Year zero$)$ working capital requirement of $$500,000$ to start production. Then, for each year, the total investment in net working capital will equal $10$ percent of the dollar value of sales for that year $($WC requirement yr $1=10\%$ of Sales in yr $1).$

For the depreciation method use the simplified straight$-$line method over $5$ years.

Cost of the new plant and equipment $=$$$25,900,000\mathrm{.}00$

Shipping and installation $=$$$500,000\mathrm{.}00.$ Additional information is provided in the Table below.

$\backslash$table$[[$Year$,$Unit Sold,Price,$\backslash$table$[[$Variable$],[$cost$/$unit$]],\backslash$table$[[$Annual fixed$],[$Costs$]]],[1,$$$120,000,$$$520,$$$270,$$$320,000$