A project proposal has the following estimated cash flows:

	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
Initial outlay	$ 760,000
Sales		$ 460,000	$ 480,000	$ 540,000	$ 585,000	$ 415,000	$ 330,000
Variable cash expenses		$ 138,000	$ 144,000	$ 162,000	$ 175,500	$ 124,500	$ 99,500
Fixed cash expenses		$ 85,000	$ 95,000	$ 105,000	$ 115,000	$ 125,000	$ 135,000
Taxes		$ 66,900	$ 74,400	$ 81,900	$ 89,400	$ 51,750	$ 33,000
After tax disposition value (positive)							$ 305,000

Some of these cash flows are positive (inflows) and some are negative(outflows). Use what you know about the nature of sales, expenses, and taxes to determine if they are positive (inflows) or negative (outflows). After doing so please calculate your total cash flows and then use a 7% cost of capital to calculate:

The net present value and explain what this number means.

The profitability index and explain what this number means.

The internal rate of return and explain what this number means.

The payback period and explain what this number means.

The present value payback period and explain what this number means.