Benford Inc. is planning to open a new sporting goods store in a suburban mall. Benford will lease the needed space in the mall. Equipment and fixtures for the store will cost $350,000 and be depreciated to $0 over a 5-year period on a straight-line basis. The new store will require Benford to increase its net working capital by $300,000 at time 0. First-year sales are expected to be $0.9 million and to increase at an annual rate of 10 percent over the expected 10-year life of the store. Operating expenses (including lease payments but excluding depreciation) are projected to be $700,000 during the first year and to increase at an 8 percent annual rate. The salvage value of the stores equipment and fixtures is anticipated to be $20,000 at the end of 10 years. Benfords marginal tax rate is 40 percent.

Calculate the stores net present value, using a 17 percent required return. Use Table II to answer the question. Round your answer to the nearest dollar. $

Should Benford accept the project? -Select-YesNoItem 2

Calculate the stores internal rate of return. Round your answer to one decimal place. %

Calculate the stores profitability index. Round your answer to two decimal places.