A new facility has initial cost as 100 million. It has nine-year asset life with 10 million salvage value. It will generate sales of $20 million per year, the variable cost is 40% of the revenue, and the fixed cost is 2 million, the facility will be depreciated 10 million each year. At the end of year 5, the facility will be sold at 65 million in the market. The firm's corporate tax rate is 35% and capital gains tax rate is 20%. 1. Calculate the net income as well as operating cash flow for year 1 to year 5. 2. What is the tax shield from depreciation? 3. What is the capital gain tax when sell the facility? 4. Given the discount rate as 10%, what is the IRR of the project? Will you accept this project or not?