FINANCE 335 HOMEWORK #7 Initial Investment Change in $ 10,000 Equipment $80,000 NOWC Shipping $10,000 Modifications $10,000 MACRS 3 years Salvage Value $20.000 Tax Rate 25% 4 year Project Cost of Capital 10% Revenues $100,000 per year Operating cost $40,000 per year Calculate the IRR, NPV, Payback Period and Profitability Index. Would you accept this project