The directors of Good So Far Ltd are interested in launching a new product. The directors believe that they can sell 7,000 units per year at a selling price of $450 per unit and the variable costs per unit will be 40 per cent of revenue. The project should have a 5-year economic life. The directors require a 20 percent return on new products such as this one. Fixed cash expenses for the project will be $1,050,000 per year. The company will need to invest a total of $2,500,000 in manufacturing equipment initially. This equipment may be depreciated at 10 percent straight line on the original cost. In 5 years, the equipment is expected to have a salvage value of $800,000. The corporate tax rate is 30% a) What is the initial net cash flow in year 0? b) What is the yearly net cash flows from year 1 to year 4? What is the net cash flows in year 5? d) What is the NPV of the project? e) What is the IRR of the project in %? Should the firm invest in this project (Answer Yes or No)