Schroeder Electronics is considering a $3-$year project which will require the purchase of $$5$ million in new

equipment. The equipment will be depreciated using a $3-$year MACRS as follows: $40\%,30\%,20\%,$ and $10\%$

for years $1-4.$ Schroeder's expects to sell the equipment at the end of the project for $30\%$ of its original cost.

The company also expects to make use of an old plant valued at $$2$ million today and $$2\mathrm{.}5$ million after$-$taxes

at the end of the project. Annual sales from this project are estimated at $$4$ million in the first year, and increase

by $$0\mathrm{.}5$M every year thereafter. The total cost of goods sold is expected to be $40\%$ of sales. Net working capital

equal to $10\%$ of sales will be required to support the project annually. All of the net working capital will be

recouped at the end of the project. Schroeder desires a $12\%$ rate of return on this project. The tax rate is $40\%.$

a$.$ What are the annual net operating profits after taxes $($NOPAT$)$ from this project?

b$.$ What are the cash flows due to the NOWC from this project?

c$.$ What is the annual total net operating capital $($TNOC$)$ from this project?

d$.$ What are the NPV and IRR of this project? Should the management of Schroeder Electronics accept

this project?