1. Estimate the cash flows and calculate NPV and profitability ratios of the project? What do you recommend?
2. Calculate the IRR of the project. Based on your calculations, what would you recommend? Why?
3. Calculate the payback period and discounted payback period. If the companys expected payback period is 4 years, what do you recommend? Why?
4. What could the maximum value of cost of capital that makes the company still to accept the project?
5. How should the annual interest expense of $250,000 be treated? Explain

Projected Unit Sales and Price for Lawn Robot
Year	Unit Sales	Unit Price
1	30,000	800
2	34,000	800
3	38,800	775
4	38,000	750
5	36,000	725
6	36,000	700
7	35,500	700
8	35,000	700
9	34,500	700
10	34,000	700

Modified ACRS Depreciation Allowances
Year	3-Year	5-Year	7-Year
1	33.33%	20.00%	14.29%
2	44.44	32	24.49%
3	14.82	19.2	17.49%
4	7.41	11.52	12.49%
5		11.52	8.93%
6		5.76	8.93%
7			8.93%
8			4.45%