QE Company has a plan to establish a new company specializing in producing new car models for 5-year period. The new company setup is in the expanding project of the QE Company. In order to implement the project the company estimates they need to use the old land that already have an old factory that had not been used for 1 year. The company intends to ruin the old factory to construct the new company there. The total preparing cost for the new company as follows:

Payment of $2,000 for consultant fees to examine the feasibility of the project.

The old land with old factory bought 3 year ago with the price of $4,000,000, the current price is equal to $5,000,000 and they think it will be valued $6,000,000 when the project finished.

Cost of ruining and removing old factory is $6,000.

The total initial investment for equipment is $11,000,000.

The company also uses old equipment from a previous project that costs $40,000,000 at the beginning of the last project. And now it is valued at $5,000,000. Based on straight-line method to calculate all equipment for this project even with old equipment. Salvage value of new equipment will be $1,000,000; Salvage value of old equipment is $500,000 when the project finishes.

The company estimates they can sell 600 cars in year one and 700 in the next 4 of the project. The selling price of car is $50,000 each.The cost the company needs to pay during the 4 years includes both variable cost and fixed cost as follows:

- Variable cost of $10,000 per car, and is expected to increase 2% each year due to the inflation effect.

- Fixed cost of $4,000,000 at year 1, and is expected to increase 2% each year due to the inflation effect (excluding depreciation expenses).

Net working capital is $3,000,000 and it would be recovered at the end of year 5.

Company is now in 30% marginal tax rate. The cost of capital is 14%.

Question: Calculate NPV, IRR, payback period, discounted payback, PI and explain why the consultant said the company should implement the new project.