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Company X is planning to add another project, which willgenerate $125,000 annual revenue for the company in the next 6years, with operating costs of $50,500 per year. To take this newproject, the company has to purchase a new equipment with a priceof $168,000 and add additional $40,000 in net working capital. Theequipment will be depreciated using 7-year MACRS depreciationmethod (7-year MACRS depreciation rates are showing below). Thecompany thinks the equipment could be sold out by the end of year 6for $20,000. With a tax rate of 35% and required return of 18%,should the company take this project or not? Why? (Please show bothNPV and IRR decisions). 7-year MACRS 1. 14.29% 2. 24.49% 3. 17.49%4. 12.49% 5. 8.93% 6. 8.92% 7. 8.93% 8. 4.46%