A B H 1 ABC Company is studying a project that would have an eight year life and require a $1,600,000 investment 2 In equipment. At the end of eight years, the project would terminate and the equipment would have no value left over. The project would provide net income each year as follows: Sales 3,000,000 6. Less Variable expense 1,800,000 7 Contribution Margin 1.200.000 8 9 Less Fixed Expenses 10 Advertising, Salaries and other fixed 700.000 11 Amortization 200.000 12 Total Fixed 900.000 13 14 Net Income 300,000 15 16 The company's discount rate is 17% 17 18 (1) compute the net annual cash inflow from project 19 20 2) compute the net present value of the project. Is it acceptable? 21 22 23