Pink Ltd has received a project offer which is expected to create substantial revenue for the firm. The project requires importing machinery from Japan which costs $$4\mathrm{.}8$ million. After assessment from the marketing team it is predicted that additional revenue generated from the project will be aroud $$2\mathrm{.}5$ million per year for the next five years after which the market will close.

This proposal uses the Straight Line method for depreciation over the five years of its economic life to depreciate the asset to zero value. The COGS and operating expenses relating to the project are predicted to be $25\%$ of sales.

The project also requires a Net Working Capital of $ $3,50,000$ immediately which can be used in other projects after the current one ends. The machinery may e salvaged post closure of the project for $$5,00,000.$

Assuming the corporate tax to be $30\%$ and the rate of return to take up the project as $20\%.$

Using NPV$,$ IRR, PBP$,$ DPBP and PI take a decision on whether Pink Ltd can proceed with the proposal or not and make assumptions if necessary.

$($Please solve the sum in detail with all the steps so that it is easier to understand. Thank you so much$)$