Project Ellayiah This company is planning to invest in a project called Ellayiah . The management accounting department received the following information Capex Project period Revenue Supplies expense Salary Utilities Discount Rate Sale of asset @ end of project Net working Capital $45000 5years $19000 6000 3500 500 7.5% $20,000 $15700 The company's tax rate is 12%. The project also earned $5200 as interest revenue. The capital expenditure is depreciated using straight line method over the project and will have a residual value of $15000. 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 b) Calculate each year cash flow c) Calculate the terminal value of the asset used d) Calculate the NPV e) Calculate the Profitability Index [PI] f) Calculate IRR of the project