ABC Inc. has the following jumbled information about an investment proposal:

a. Revenue in year 1 is $500,000. Revenues in each of years 23 are $450,000. Revenues in each of years 45 are $800,000.

b. Year 0 initial investment is $1,000,000.

c. Operating expense in year 1 is $300,000. Operating expenses in each of years 23 are $230,000. Operating expenses in each of years 45 are $260,000.

d. Fixed expense is $110,000 in each of years 15.

e. Salvage value is $120,000 in year 5.

f. Straight-line depreciation is used over five-year life.

g. Net working capital in year 1 is $150,000. The figure is expected to grow by 6% in year 2. Net working capital in each of years 3-4 is $170,000. Net working capital will be recovered in year 5.

h. Tax rate is 20%.

i. The cost of capital is 12%.

Draw up a set of cash flow Calculate IRR, Discounted Payback Period and NPV Based on IRR and NPV, should the project be accepted?

ABC Inc. has the following jumbled information about an investment proposal: a. Revenue in year 1 is \\( \\$ 500,000 \\). Revenues in each of years \\( 2-3 \\) are \\( \\$ 450,000 \\). Revenues in each of years 4-5 are \\( \\$ 800,000 \\). b. Year 0 initial investment is \\( \\$ 1,000,000 \\). c. Operating expense in year 1 is \\( \\$ 300,000 \\). Operating expenses in each of years 2-3 are \\( \\$ 230,000 \\). Operating expenses in each of years 4-5 are \\( \\$ 260,000 \\). d. Fixed expense is \\( \\$ 110,000 \\) in each of years \\( 1-5 \\). e. Salvage value is \\( \\$ 120,000 \\) in year 5 . f. Straight-line depreciation is used over five-year life. g. Net working capital in year 1 is \\( \\$ 150,000 \\). The figure is expected to grow by \6 in year 2 . Net working capital in each of years 3-4 is \\( \\$ 170,000 \\). Net working capital will be recovered in year 5 . h. Tax rate is \20. i. The cost of capital is \12. Draw up a set of cash flow Calculate IRR, Discounted Payback Period and NPV Based on IRR and NPV, should the project be accepted