Ying-Ming LLC generates an EBIT of $5,000,000 in year 1. EBIT increases by 10% yearly from Year 1Year 5. The firm also provides for $1,500,000 for depreciation, which increases by 10% from Year 1-Year 5. Corporate tax is 25%. The desired pay back for such projects = 4 years

You can choose the initial investment =10,000,000

Required

Calculate the payback period and decide whether Ying-ming should accept or reject the project