You are evaluating a new project for Globex Corporation as the company is planning to launch a new and very efficient mobile device named Meta-5050. The new product is expected to run for 5 years.

To produce this new product, Globex needs to purchase new equipment that will cost $750,000. The company needs to spend another $10,000 for shipping and installation.

You estimate the sales price of Meta-5050 to be $650 per unit and sales volume to be 800 units in year 1; 1,400 units in years 2-4; and 500 units in year 5. The cost of the contents, packaging and shipping are expected to be $225 per unit and the annual fixed costs for this project are $150,000 per year. The equipment will be depreciated straight-line to zero over the 5-year project life. The actual market value (salvage value) of these assets at the end of year 5 is expected to be $35,000.

If this project is taken up, inventory will increase by $72,000, accounts receivable will increase by $36,850, and accounts payable will increase by $35,000 in the beginning.

Assume a tax rate of 25% and the cost of capital for the company is 10%. What will the cash flows for this project be? Will you accept this project? Why or why not? Show all of the calculations, cash flows, and analysis.