ABC Inc. is considering whether to add a new store in Denver. The project will require the company to buy some new equipment at a cost of $240,000, and will also require $3,350 in shipping, handling, and installation costs. To operate the equipment properly, workers will have to go through a brief training session that will cost $1,800. To finance the purchase of the equipment, ABC Inc. will take out a 5-year, $200,000 bank loan at an annual interest rate of 10%. To support the operations, ABC Inc. will need to increase initially working capital by $22,500. The project is expected to last 5 years. The new store in Denver is expected to generate annual sales of $790,000 over the next 5 years. The annual operating costs associated with the store will be $634,000. A return of the initial working capital will occur at the end of the 5th year. The new equipment has an expected life of 5 years, and will be depreciated using a straight line method to a book value of $0. It is anticipated that the machine will be sold for $3,700 at the termination of the project. ABC Inc.s marginal tax rate is 30%. Calculate the projects net initial investment in year 0, annual incremental operating cash flows during year 1 and year 4 of the project, and the total cash flows in the terminal year (i.e., year 5) of the project. Assuming that ABC Inc.'s cost of capital is 12%, calculate the NPV, PI, IRR and payback period of the project. Should the project be adopted?