The following information is available about an investment opportunity:

Initial Capital Expenditure $$3$ Million

Annual Sales $($in units$)100,000$

Selling price per unit $$50$

Variable cost per unit $$20$

Project life $3$ years

Salvage value $$0$

Depreciation Straight line, over life of the project

Tax rate $35\%$

WACC $20\%$

Working Capital Initially the project requires an increase in net working capital of $$600,000,$ but it will be recovered after the project$$s life.

Answer the following questions $($need to show the steps BY HAND NO EXCEL but can use financial calculator$)$:

$1.$ Calculate the project$$s depreciation expense each year.

$2.$ Calculate the project$$s the project$$s cash flows in years $0,1,2,$ and $3.$

$3.$ Calculate the project$$s payback period.

$4.$ Calculate the project$$s NPV$.$ Should the project be implemented?

$5.$ Calculate the project$$s PI$.$ Should the project be implemented?

$6.$ Calculate the project$$s IRR. Should the project be implemented?

$7.$ Calculate the project$$s MIRR. Should the project be implemented?