SLPC has decided to start a new project manufacturing gardening tools, an entirely new area for the company. The company is considering a 4 year project in which revenues will be 6M/year (constant for 4 years) and the capital investment requirement will be 3M (zero value after 4 years). This investment is depreciated on a straight line basis over 4 years and the company's tax rate is 30%.

1. Calculate the incremental free cash flows for the project

2. If discount rate is 12.8% shoudl the company go ahead with the project?