the enpontis corporation is looking at opening a small manufacturing facility in maple ridge to produce a pipe for a pipeline. the business is expected to last for 14 years. you expect start up costs of $2,500,000 and next year, a further investment of $1,000,000. expenses are expected to be $500,000 per year. Revenues will be $800,000 per year. You estimate that you can sell the facility for $4,000,000 at the end of 14 years. Assume revenue occurs at the end of each year and expenses occur at the beginning of each year. The required MARR is 10% effective.

a) What is the NPV of the project? Your answer must include a cash flow diagram. NPV: Should you invest? Yes or No. Why or Why not?

b) The provincial government has indicated that it would like to encourage the project and might give enpontis a one time grant after it has been operating for five years. As well as your accountant has told you that a MARR of 9% is more appropriate. How large of a grant is needed, 5 years from now, to provide a MARR of 9%?

c) Another possibility is to have a city of maple ridge reduce their annual property taxes. Initial talks indicate that they might be willing to reduce the property taxes, which are paid at end of each year. Over the 14 years, what reduction in annual taxes is needed to provide a MARR of 9%?