Solus, an Australian manufacturer of Scientific Equipment, is considering expanding its Australian operation. It is considering an investment in new plant of exist4.8 million. The project will be financed with a loan of exist2, 400,000 which will be repaid over the next five years in equal annual end of year instalments at a rate of 8.60% percent pa. Assume diminishing value depreciation over a five-year life, and no taxes. The project's cash flows before loan repayments and interest are shown in the table below. Cost of capital is 13.80% pa (the required rate of return on the project). A salvage value of exist325,000 is expected at the end of year five and is included in the cash flows for year five below. Ignore taxes and inflation. You are required to calculate: (1) The amount of the annual loan repayment and produce a repayment schedule. (2) NPV of the project (to the nearest dollar) (3) IRR of the project (as a percentage to two decimal places) (4) PB, the payback in years (to one decimal place) (5) ARR, the accounting rate of return (to two decimal places) (6) PI (present value index or profitability index) (to two decimal places) (7) Is the project acceptable? You must provide a decision or explanation for each of the methods in parts (2) to (6). Why or why not (provide a full explanation)? Also a brief explanation of your treatment of Salvage Value and Loan Repayments is required. (600 words)