2. An analyst at Squirtle Corp. is working on a capital project proposal. The project is expected to require purchasing long-term assets with an installed cost of $600,000. It will also require an increase in Net Working Capital of $75,000. At the end of the 5th year, the project will be terminated, at an after-tax cost of $15,000. The project is expected to generate annual after-tax operating cash flows of $150,000 each year for 5 years. Squirtle requires a return on capital projects of 10%. Should they make the investment? m idi Tonrar 2