1. The company is considering investing in a new conveyor system. The conveyor would cost $1,000,000 fully installed and will generate cash inflows of $165,000 per year for 10 years thereafter. Given these projected cash flows and the firms cost of capital found above, should the company finance the project? Explain why the firm should or should not finance the project.

NPV= 1,000,000 + 165,000/ (1+14.22%)^1