A company is contemplating a $7-$year life project which will require an upfront setup cost of $$272,000.$ The project will generate a revenue of $$107,000$ for the first year and shall grow at the prevailing inflation rate of $5\%.$ The annual cost that will be incurred in the first year is $$32,000$ and shall increase at the rate of $6\%$ p$.$a$.$ The real rate of interest prevailing in the market is $8\%.$

The depreciation on the project cost shall apply on SLM basis. The corporate tax rate is $34\%.$

Using the above information, you are required to calculate the NPV of the project and advise the company whether the project is feasible or not.

$-$$$28\mathrm{.}424\mathrm{.}59$; Not feasible

$$28,424\mathrm{.}59$; Feasible

$$27,728\mathrm{.}63$; Feasible

$-$$$27,728\mathrm{.}63$; Feasible