PROJECT$-$ create your own capital budgeting project $($investment project$).$ complete a capital budget and NPV analysis.

background info: $$ You are currently running a successful business in your hometown and looking to expand to another country. To serve this expansion campaign, you are considering to acquire one new asset right now in year $0$ and another new asset in year $2$ of the project. Of course, there will be associated costs for this project that you need to consider for the project.

$$ As the acquired assets are quite on demand, you expect to sell the two assets at profit at the end to close off the project.

$$ All transactions are made in RMB $($no international exchange is needed here$)$

You must include assumptions $/$ reasoning as to WHY are using the figures you have. Don't make up some numbers just because the assignment requires you to do so$.$ The more details the better.

Your project must include the following key points:

$$ Life of the project: $7$ years

$$ Useful life of the asset purchased in year $0$: $4$ years

$$ Useful life of the asset purchased in year $2$: $6$ years

$1$ x Sunk Cost

$1$ x Opportunity Cost

$1$ x Working Capital item

$1$ x Financing Cost

$4$ x Cash flow items over the life of the project

$$ Required return: $5\%$

$$ Tax rate: $30\%$