Extracted text: There is unused space in the factory. This space can either be rented to another business for $20,000 per year or used to manufacture a new product. The new product would require an investment of $856,000 in equipment and $145,000 in working capital, the latter can be liquidated at the end of the product lifecycle, eight years in the future. The salvage value for the equipment at the end of 8-years is estimated at $58,000. The equipment will be placed in the 20% CCA asset pool. According to market research, 35,000 units of the product can be sold each year. The unit selling price is $55.00, its unit variable cost is $35.00, and fixed costs total $450,000 per year. These figures will remain unchanged throughout the product's life cycle. The corporate income tax rate is 35% and its cost of capital is 14%. The decision is being made before the 2019 tax year. Calculate the project's NPV using the six-step approach. Would you recommend approval for the project? 1) Initial investment (nearest dollar without comma, e.g. 15000, or if negative, -15000): 2) PV of operating income (nearest dollar without comma, e.g. 15000, or if negative, -15000): 3) PV of CCA tax shield (nearest dollar without comma, e.g. 15000, or if negative, -15000): 4) PV of salvage (nearest dollar without comma, e.g. 15000, or if negative, -15000): 5) PV of CCA lost from salvage (nearest dollar without comma, e.g. 15000, or if negative, -15000): 6) PV of working capital (nearest dollar without comma, e.g. 15000, or if negative, -15000): 7) Net Present Value (nearest dollar without comma, e.g. 15000, or if negative, -15000): 8) Approve or reject project (choose one) v Reject Approve