MBA$$s INC. has a new CAPEX project that they feel is worth examining. The new project requires an initial cash outlay of $$11$ million today, the investment involves the purchase of class $10$ equipment with a CCA rate of $30\%($assume that the half$-$year rule applies$),$ and the equipment costs $$10$ million. The other $$1$ million, will be paid to Northshore Consulting, which will do a feasibility study of the new project. Revenues less expenses $($S$-$E$)$ generated from this project are projected to be $$2\mathrm{.}75$ million annually for $12$ years. The project requires an inventory of $$200,000,$ shown as Net Working Capital $($NWC$)$ and the NWC will remain at the same level for the rest of the life of this project. Suppose the corporate tax rate and required rate of return are $35\%$ and $10\%,$ respectively.

Determine the NPV of the project. And shall we accept or reject the project?

Hint: Don$$t include sunk costs!