A company is considering an investment in a new project that requires an initial outlay of $500,000. The project has an expected life of 5 years with no residual value at the end. It is anticipated to generate annual revenues of $150,000 and incur annual operating costs (excluding depreciation) of $40,000. The company uses straight-line depreciation and has a tax rate of 40%. The discount rates and corresponding present value factors for 5 years are provided below:

Discount Rate	Present Value Factor
10%	3.790
12%	3.605
14%	3.433
16%	3.274
18%	3.127

You are required to:

1. Calculate the annual depreciation expense.
2. Determine the annual net cash flows after tax.
3. Compute the Net Present Value (NPV) for each discount rate.
4. Identify the Internal Rate of Return (IRR) of the project.
5. Advise whether the project should be accepted based on the NPV and IRR.