NPV,profitability index,proceeds

Hollings Company, a furniture manufacturer, is considering investing in some new production machinery. The details of this investment are: Amount of Investment 300,000 Annual cash flow revenue 84,000 Annual cash flow expenses 58,000 Life of the project (in years) 10 Scrap value of equipment at the end of the project CA 18,000 Hollings Company's corprate tax rate 31.00% Hollings Company's weighted average cost of capital 11.50% CCA rate on the new equipment 25.00% Required 1 ) Calculate the net present value of this project. 2 ) Calculate the profitability index. Should Hollings proceed with the new project