18. A firm is considering an investment project involving an initial cost of 200,000. The life of the project is estimated as 5 years. The project will provide annual net cash inflow of 70,000. The cost of capital is 10 per cent. Should the project be accepted? A subsequent evaluation revealed that firm had not considered price level changes in its estimates of cash flows and the cost of capital. The expected annual rate of inflation is 5 per cent. If inflation is accounted for, what would be the firm's decision?