Question: ABC Company is considering a new project with an initial investment of $500,000. The project is expected to generate annual cash flows of $150,000 for

ABC Company is considering a new project with an initial investment of $500,000. The project is expected to generate annual cash flows of $150,000 for the first two years, $200,000 for the next three years, and $100,000 for the final year. The project's salvage value at the end of year five is expected to be $50,000. The company's cost of capital is 12%. Calculate the project's net present value (NPV) and make a recommendation based on your analysis.

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