X, Inc. is a volume manufacturer of high technology automotivemirrors (including cell link and voice activation). FX is lookingto expand their operations to add a second product line capable ofproducing 1.3 Million units per year. The equipment investment costfor this new operation is $27 Million. The project falls under a 7year MACRS class life and the company estimates that the salvagevalue will be $2.7 Million at the end of the 6 year project. Theaverage selling price for each mirror is $85 per unit. The annualexpected sales shown below: Year 2018 2019 2020 2021 2022 2023Volume (000) 600 750 1000 1200 1200 1200 The material cost for eachmirror is $20 (with 20 % of the material imported from Canada and30% from China). The labor to produce each mirror is $13 withadditional variable cost of manufacturing at $15 per unit. Thefixed cost of manufacturing operations is $10 Million per year. FXmaintains 1 month of raw materials and 1 month of WIP and finishedgoods combined to balance overall automotive demand. Assume that FXhas a federal tax rate of 35% and a state tax rate of 4%. Alsoassume that FX uses a MARR of 15% for all economic analyses. a)Assume the material cost and inflation (material, labor, overhead)can fluctuate over next 6 years similar to the past 6 years. Puttogether a cash flow model (using simulation) to project theNPV