QUESTION 4 Lowel inc projects unit sales for a new project with a life of FOUR YEARS as follows: Year Production will require Lowe must have an amount of NOWC on hand equal to 8 percent of the upcoming year's sales. Total fixed costs are $100.000 per year, variable production costs are $200 per unit and the unitar $300 each. The sale price and variable costs will increase by 2 percent every year. The equipment needed to begin production has an installed cost of $2,000,000 The equipment qualifies as 5-year MACRS Years Depreciation rate 20% F Unt Sales 0.000 12,000 14,000 6.000 32% b 19% 12% FOUR years, this equipment can be sold for about 18 percent of its acquisition oest Low estimates, what is the IRR of the project 31.40% 30.01% 21.29% 11.30% the 25 percent marginal tax bracket and a required at its projects of 18 percent. Based on these pripre