New West and Van Corporation is considering to launch an innovative product and estimates sales of 880,000 and total costs of $232,000 annually. This project requires an investment in equipment of $1,200,000 which expects to last for four years with a salvage value equal to $100,000; the CCA asset class for the equipment will continue to remain after the selling of the equipment. During this time the company will use a 40% CCA rate. Assume a tax rate of 30%. If the company's required rate of return is 16%: a) determine the NPV of the project. Based on NPV, would you accept the project? Why? b) determine the cash flows for year 0, 1 and the last year of the project. c) calculate the Profitability Index for the project. Based on the Profitability Index, would you accept the project? Why