Wiscos Corp is considering adding a new product line to its product mix, and the capital budgeting analysis is being conducted by John Rudolph, a recently graduated MBA. The production line would be set up in unused space in Wisco's' main plant. The machinery's invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. The machinery has an economic life of 4 years, and Shrieves has obtained a special tax ruling that places the equipment in straight-line depreciation. The machinery is expected to be sold for $25,000 after 4 years of use.

The new product line would generate incremental sales of 1,000 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. Each unit can be sold for $200 in the first year. The sales price and cost are both expected to increase by 3% per year due to inflation. Further, to handle the new line, the firm's net working capital would have to increase by an amount equal to 12% of sales revenues of the following year. The firm's tax rate is 25%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project, is 10%.

Calculate the NPV, IRR, and payback period for the new line project and indicate what you think Wiscos Corp. should do?