You are evaluating a project for The Ultimate recreational pool table. The project will make use of an existing warehouse which is currently rented out for $100,000 a year. If the project goes ahead, the rental income will be lost starting from t=1 until the project ends. Investment in PPE (property, plant and equipment) amounts to \$1 million and will be depreciated on a straight-line basis over 10 years from t=1. However, the project is estimated to terminate at t=5 whereupon the PPE will be sold for $400,000. The net working capital is forecasted to be 10% of sales for years 1 to 4 . Net working capital will be fully recovered at t=5. Year 1 sales is $0.8 million and will grow at 5% yearly. COGS is 40% of sales. The tax rate is 20% and the cost of capital is 10%. Compute the payback, discounted payback, NPV, IRR and PI.

how did you get 698478 for the final cash flow?