ABN Company is considering a 4-year project with some information (see the table below) from a Pro Forma income statement. Unit: (In Thousands) The project requires a new equipment which will cost $4,000,000 in year 0 . The equipment will be depreciated on a straight-line basis to zero over the 4-year life as shown in the table (i.e., each year the depreciation is $1,000,000 ). The equipment does not have any market value at the end of the project. In addition, the company will need to increase its net working capital by $2,000,000 for the project initially and recover it at the end of the project. Question 3a Determine the cash flows from assets for each year (from year 0 to year 4) for the project. (10 marks) If the require rate of return is 15%, determine whether the project should be accepted or not. (8 marks) Question 3c The CEO would like to get back the initial investment in 2 years according to his own experience. Thus, the CEO makes the decision for the project with a payback period method. Appraise the CEO's way of decision-making (without any calculation). (Word limit - 150 words) ABN Company is considering a 4-year project with some information (see the table below) from a Pro Forma income statement. Unit: (In Thousands) The project requires a new equipment which will cost $4,000,000 in year 0 . The equipment will be depreciated on a straight-line basis to zero over the 4-year life as shown in the table (i.e., each year the depreciation is $1,000,000 ). The equipment does not have any market value at the end of the project. In addition, the company will need to increase its net working capital by $2,000,000 for the project initially and recover it at the end of the project. Question 3a Determine the cash flows from assets for each year (from year 0 to year 4) for the project. (10 marks) If the require rate of return is 15%, determine whether the project should be accepted or not. (8 marks) Question 3c The CEO would like to get back the initial investment in 2 years according to his own experience. Thus, the CEO makes the decision for the project with a payback period method. Appraise the CEO's way of decision-making (without any calculation). (Word limit - 150 words)