Project Ellayiah This company is planning to invest in a project called Ellayiah. The management accounting department received the following information $65,000 Project period Syears Revenue $19000 Operating expenses 10,000 Salvage Value 15,000 Tax Rate 25% Discount Rate 7.5% Sale of asset @ end of project $20,000 Net working Capital $10,700 The capital expenditure is depreciated using straight line method over the project and will have a residual value of $11,000. The company will have to rent a building for $4000 during the project life. The net working capital will be returned at the end of the project. REQUIRED a) Calculate the initial investment, After tax cash flow and terminal value b) Calculate the discounted payback period, NPV, Profitability Index and IRR of the project c) If the following information about another project is given below. Make a decision table and choose the best project Discounted Payback Period 3.5 years Net Present value +$4,500 Profitability Index 1.24 IRR 9%