Your company has been doing well, reaching $1 million in annual earnings, and is considering launching a new product. Designing the new product has already cost $500,000. The company estimates that it will sell 800,000 units per year for $3 per unit with fixed costs of $300,000 per year and variable costs of $2 per unit. Production will end after year 5. New equipment costing $2 million will be required. The equipment will be depreciated using the 7-year MACRS schedule. You expect to be able to sell the equipment for $200,000 at the end of year 5. Your current level of working capital is $300,000. The new product will require the working capital to increase to a level of $380,000 immediately. Then working capital requirements will be $400,000 in year 1, $420,000 in year 2, $450,000 in year 3, $390,000 in year 4, and finally returning to $300,000 at then end of the project. Your tax rate is 35%. The discount rate for this project is 10%. Do the capital budgeting analysis for this project and calculate its NPV and IRR.