X is evaluating a project which costs 1.500.000, customs + duties are 10% of purchase price, installation requires 25.000. Life of the project machinery is 7 years with 0 salvage value. Expected sales are 1.750.000 annually, CGS=60% of sales, tax rate is 22% Firm collects its receivables in 45 days. Inventory turnover is 5 times, accounts payable will be 75.000 on the average. If r=10% should the investment be made? Use npv for decision making. 1 year = 360 days