$1)$ Assume that you just graduated from GW and are employed at an investment bank making $$120,000($after$-$tax$)$ per year, and you expect to make the same amount for each of the next $5$ years. A classmate from FINA$6274,$ who knows what a hard party person you were, gives you a call and tries to convince you to join forces with him on a project. The project is to produce a new type of vodka, $$Hangover$$s over$,$ that won$$t make one feel hangover the next morning no matter how many bottles one drinks. If you decide to join, you will have to quit your current job, and work full$-$time on the project. The project requires an initial investment of $$400,000$ in production equipment, which can be depreciated straight$-$line over $5$ years to a salvage value of $$80,000.$ You own a house that you$$re currently renting out for $$24,000$ a year and you$$re planning to use the house as your office if you join the project. You expect to sell $20,000$ bottles of the $$Hangover$$s over$$ at $$40$ per unit each year for the next $5$ years. The production cost is $$15$ per unit, and fixed costs associated with the project are estimated to amount $$150,000$ per year. Assume that your tax rate is $40\%$ and your discount rate for projects with similar risk is $12\%.$ Should you accept the project?