Hingtong Corporation has estimated the following for a proposed investment:

Initial investment $180k

Working capital required up front and released at the end $45k

Annual net cash inflows $66k Salvage value of new machine $24k

Prepare a timeline showing cash inflows and outflows for this project assuming 5 years of cash inflows

1.Compute the NPV of the project assuming a discount rate of 11% and a life of 5 years

2. Compute the NPV of the project assuming a discount rate of 13% and a life of 7 years

3. Solely looking at the quantitative NPV you calculated, should the project be accepted? What qualitative fact could change to alter your decision?