Answer all parts complete and with full steps with all inputs and outputs mentioned. Do it with hands (No excel allowed). Handwritten only otherwise dont attempt.

PHI is considering a new 4-year expansion project that requires an initial fixed asset investment of M\$3.5 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will have a market value of M $225,000. The project requires an initial investment in net working capital of M\$330,000, all of which will be recovered at the end of the project. In the first three years, the project is estimated to generate annual sales and costs of M$2,640,000 and M$1,056,000 respectively. In the fourth year, sales and costs are estimated to be M\$2,050,000 and MS1,100,000 respectively. The tax rate is 28 percent and the required return for the project is 14.98 percent. Is the project acceptable? Why