Assignment 4 Capital Budgeting IBL Project IBL is a company which is growing very fast and is undertaking many projects. Below is the financial information concerning a project which the management accounting department has to study and make a decision whether to accept or to reject. Capex $27000 Project period 6 years Revenue $9,500 Supplies expense 800 Salary Expense 3500 Utilities Expense 1,200 Discount Rate 9% Sale of asset @ end of project $6,000 Net working Capital $4,500 The company's tax rate is 30%. The project also earned $1,500 as rent revenue. The capital expenditure is depreciated using straight line method over the project and will have a residual value of $6000. the company will have to pay $650 for maintenance cost. REQUIRED a) Calculate the initial investment b) Calculate each year cash flow c) Calculate the terminal value of the asset used d) Calculate the NPV e) Calculate the Profitability Index [PI]