Use the following fact pattern: The company has received a request to deliver a project for a customer. The project will provide an expected revenue of $1.9 million each year over the next four years. The variable cost each year is expected to be 35% of sales. If the company accepts the new project, they will have to make a new investment of $2 million in equipment. The investment in equipment is to be depreciated over the life of the project on a straight-line basis and has a salvage value of 200,000 with a contract for sale in year four. In addition, other fixed costs, excluding interest cost, are expected to increase by $350,000 each year. To finance the investment, the company intends to take up a bank loan for $800,000 at the beginning of the period and will repay the loan in one lump sum in year four. The interest is expected to be 8% and will be paid at the end of each year. The company expects to receive an advance payment of $300,000 from the customer for the project as a deposit. The deposit will be refunded in full to the customer once the project is fully complete. Assume that the tax rate is 23%. 1. Prepare a schedule to show the relevant cash flows for the project. 2. Given that the company has a relevant cost of capital of 15%, would you advise them to conduct this project? Explain your answer. 3. What is the internal rate of return and what does that tell you in your own words? 4. What would NPV be for the project if the last year of the project had an additional variable cost of 215,250 and should they invest in the project? Are there any other factors to consider (provide examples)? Explain your