Capital Budgeting 13 marks The following data concem an investment project: Investment in Equipment Net Annual cash inflows Working capital required Salvage value of the equipment Life of the project $16,000 $3,600 $4,500 $2,000 $12 years Discount rate $14% The working capital will be released for use elsewhere at the conclusion of the project. (Ignore income taxes in this problem.) Required: 1. Calculate the project's net present value, and recommend whether or not the project should be accepted (9 marks) 2. Calculate the project's internal rate of return (IRR), and recommend whether or not the project should be accepted (2 marks) 3. Calculate the project's payback period and explain why the project should be accepted or rejected (2 marks)