Project y involves a new type of graphite composite in-line skate wheel. We think we can sell 6,000 unitsper year at a priceof $1,000 each. Variable costs will run about$400 per unit, and the product should have a four-year life. Fixed costs for the project will run $450,000 per year. We also engaged the service of a consulting company to run a feasibility study on the project, and we paid $250,000 for it, on top of $100,000 for R&D. Further,we will need to investa total of

$1,250,000 in manufacturing equipment. This equipment is seven-year MACRS property for tax purposes. In four years, the equipment will be worth about half of what we paid for it. We will have to invest $1,150,000 in net working capital at the start. prepare an analysis and a report for the NPV of the investment project. Assume rate of return 30%.