Question 3: (30 Points) Advantech, Inc is considering a new product. The company spent $200,000 to develop the product. The estimated life of the product is 3 years and the estimated operating revenues and costs are the following: 2 3 Sales 500,000 600,000 400,000 Operating costs 300,000 350,000 200,000 To produce this product the company will have to acquire new equipment that costs $300,000. The equipment has a life of 3 years and will be depreciated straight line to zero. The company believes that the equipment can be sold in 3 years for $80,000. The new product requires an increase in networking capital of $60,000 that will occur at time 0. The tax rate is 30% and the appropriate discount rate is 8%. a. Estimate the cash flows associated with the project. b. Compute the NPV for the project. c. Should Advantech start the production of the new product? Explain why