IBL Project IBL is a company which is growing very fast and is undertaking many projects. Below is the financial information concerning a project which the management accounting department has to study and make a decision whether to accept or to reject. Capex $27000

Project period 6 years

Revenue $9,500

Supplies expense 800

Salary Expense 3500

Utilities Expense 1,200

Discount Rate 9%

Sale of asset @ end of project $ 6,000

Net working Capital $4,500

The companys tax rate is 30%. The project also earned $1,500 as rent revenue. The capital expenditure is depreciated using straight line method over the project and will have a residual value of $6000 . the company will have to pay $650 for maintenance cost. REQUIRED Calculate the initial investment Calculate each year cash flow Calculate the terminal value of the asset used Calculate the NPV Calculate the Profitability Index [PI]