For this new project, ERO will need to invest AED 800 million on the construction of the resort. It will also need to use older interior furnishings that is currently sitting idle. The company's finance department has estimated that ETO would sell the old furnishings stock for AED 120m if it is not used in the new project. The working capital of the business will increase by AED 250m at the start of the project. Based on expected visitors' numbers, occupancy rate of the resort, prices over the project period, operating cash flows over the five year operating period are presented below in Table 1. 2 Year 3 4 5 AEDm 320 360 400 Pre-tax net operating cash flows 480 After Year 5, the company expects its pre-tax cash flows to grow at 5% per and ERO's current cost of capital is 10%. What is the total investment (Cash outflow) of the project? Terminal Value Calculate the NPV of the project Accept or Reject? 560