The Engineering Department at Great Lakes Community College, a taxpayer funded institution, is considering a new Fabrication Lab (Fab Lab) on campus. The cost of designing the Fab Lab and the equipment installation is estimated at $650,000. The equipment would include a 3-D printer and other fabrication machinery. The Engineering Department manager believes that the new Fab Lab would increase enrollment which would increase cash in-flows each year by $175,000. The additional annual costs related to the Fab Lab are estimated at $25,000 for labor (lab technician), $5,000 for repairs & maintenance, $21,000 for supplies and $7,500 for utilities. In order to increase enrollment, the college would need to make the community aware of the new Fab Lab. To do this, the manager is budgeting a total of $24,000 for marketing over the first three years of the project. It is estimated that the Fab Lab would have a useful life of 15 years and at the end of the life, all of the equipment could be sold for $30,000. You work in the Financial Services Office at Great Lakes Community College. The College President, Dr. Salas, has asked you to analyze the project and prepare a memo explaining your results. The college uses a 15% discount rate. You are to: 1. Calculate net cash in-flows for the Fab Lab for each year 2. Calculate Accounting Rate of Return, Payback Period and Net Present Value for the Fab Lab 3. Prepare a brief memo explaining your results and discussing other items to consider when making capital budgeting decisions.