Question 1 (44 marks) Hollings Company, a furniture manufacturer, is considering investing in some new production machinery. The details of this investment are: $ $ $ Amount of Investment Annual cash flow revenue Annual cash flow expenses Life of the project (in years) Scrap value of equipment at the end of the project Hollings Company's corprate tax rate Hollings Company's weighted average cost of capital CCA rate on the new equipment 395,000 129,000 57,000 14 17,000 33.00% 11.50% 25.00% $ Required 1) Calculate the net present value of this project. 2) Calculate the profitability index. 3) Should Hollings proceed with the new project? Question 1 (44 marks) Hollings Company, a furniture manufacturer, is considering investing in some new production machinery. The details of this investment are: $ $ $ Amount of Investment Annual cash flow revenue Annual cash flow expenses Life of the project (in years) Scrap value of equipment at the end of the project Hollings Company's corprate tax rate Hollings Company's weighted average cost of capital CCA rate on the new equipment 395,000 129,000 57,000 14 17,000 33.00% 11.50% 25.00% $ Required 1) Calculate the net present value of this project. 2) Calculate the profitability index. 3) Should Hollings proceed with the new project