Prepare a cash flow table for the following project and state whether this project should be accepted or rejected? Explain why. Please show all your calculations

The firm is in the tourism and accommodation business. The firm determined that there is an unmet demand for accommodation and decided to build a new hotel. Economic analysis and technical analysis for this investment project are completed. Cash flows for the financial analysis are estimated as follows:

Investment Outlays:

Project preparation and analysis costs: 30,000 in 2020

Land: 500,000 in 2020

Building: 600,000 in 2020

Furniture and Fixtures: 100,000 in 2020

Vehicles: 70,000 in 2020

Operating Cash Flows:

Discount Rate: %9

Expected Sales Revenue ($): 595,000 (in 2021) 680,000 (in 2022); 765,000 (in 2023); 650,000 (in 2024)

Total variable and operating expenses: %20 of sales revenue

Total Fixed Expenses: $ 120,000 each year

Depreciation ($): 303,000 (in 2021); 241,910 (in 2022); 176,141 (in 2023); 125,186 (in 2024)

Tax Rate: 20%

Net Working Capital Requirement is %10 of the sales revenue. Net working capital investment is made in the preceding year (For example, net working capital investment for 2021 is made in 2020)

Disinvestment Flows: No disinvestment flows.

	2020	2021	2022	2023	2024
Project preparation and analysis costs
Land
Building
Furniture and Fixtures
Vehicles
Sales Revenue
Total variable operating expenses
Total fixed expenses
Depreciation
EBT (Earnings before tax)
Tax
Net Operating Income
Add back Depreciation
Cash Flow from operations
Investment in net working capital
Recovery of net working capital
Net Disinvestment flows
Net Cash Flows