Thomson Media is considering some new equipment whose data are shown below. The equipment would be depreciated over a 3 year MACRS life, but it would have a salvage value at the end of Year 3, when the project would be closed down. An increase in working capital would be required at time 0. Should the project be accepted? What is the project’s NPV? WACC 10.0% Net investment in fixed assets (depreciable basis) $70,000 Required new working capital $10,000 MACRS deprec. rates 33 %, 45%, 15% , 7% Increase in sales revenues, each year $75,000 Increase in operating costs (excl. deprec.), each year $30,000 Expected pretax salvage value $5,000 Tax rate 35.0%