XYZ Corporation is evaluating a new project that requires an investment of $400,000. The project is expected to yield annual revenues of $120,000 and annual expenses of $30,000 for the next 6 years. The company uses straight-line depreciation, and the tax rate is 35%. The discount rate is 10%.

Requirements:

1. Calculate the annual depreciation.
2. Determine the annual net income after taxes.
3. Compute the annual cash flows.
4. Calculate the Net Present Value (NPV).
5. Evaluate whether XYZ Corporation should proceed with the project.