FishCo company can spend 61,000 dollars for fish catching equipment (initial investment). FishCo company catches and sells 12,000 kg fish per year for the next 6 years. A kilogram price of a fish is 10 dollar and expected to increase with inflation. Expenses of catching a fish is 5 dollar per fish. For both expenses and price of the fish, inflation rate is 6%.

The fish catching equiment depreciates to 1,000 dollars (salvage value) for the next 6 years. FishCo. believes that they can sell their second equipment 6,100 dollars. Working capital is expected to be %12 of current sales. Discount rate for FishCos project is 20% and tax rate is 8%. Should they invest in this project?