Project analysis (Pset 4) Your job: Determine whether HP should produce a high-end smartphone. The project lasts 6 years. hp Investments $30 million in year 0 for machinery. Assume straight-line depreciation over 6 years Machinery will be sold for $2.5 million at the project's end - NWC of $3 million to begin the project, which will increase at a 4% rate each year . Revenue and cost estimates . $50 million in year 1, growing at 10% yearly after - Annual operating costs of (a) $30 million fixed, and (b) variable costs of 30% of annual revenues Tax rate = 30%, Discount rate = 12%