Your faced with making a decision on a large capital investment proposal. The capital investment amount is $640,000. Estimated annual revenue at the end of each year in the eight-year study period is $180,000. The estimated annual year-end expenses are $42,000 starting in year one. These expenses begin decreasing by $4,000 per year at the end of year four and continue decreasing through the end of year eight. Assuming a $20,000 market value at the end of year right and a MARR= 12% per year, answer the following questions.

What is the PW of this proposal?

What is the IRR of this proposal?

What is the simple payback period for this proposal?

What is your conclusion about the acceptability of this proposal?