Capital Budgeting

Table:

Year	Revenue ($)	Operating Costs ($)	Depreciation ($)	Working Capital ($)
0	0	0	0	2,000,000
1	6,000,000	3,000,000	500,000	0
2	7,000,000	3,500,000	500,000	0
3	8,000,000	4,000,000	500,000	0

Requirements:

1. Calculate the Free Cash Flows (FCF) for each year.
2. Determine the project's NPV with a discount rate of 8%.
3. Calculate the payback period.
4. Assess the impact on NPV if the discount rate increases to 10%.