Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:

Year	Unit Sales
1	73,000
2	86,000
3	105,000
4	97,000
5	67,000

Additional information: · Production of the implants will immediately require an investment of $3,500,000 in net working capital that will be recovered in the end of the project. · Total fixed costs are $3,200,000 per year, variable production costs are $265 per unit, and the units are priced at $375 each. · The equipment needed to begin production has an installed cost of $16,500,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. · In five years, this equipment can be sold for about 20 percent of its acquisition cost. · The tax rate is 21 percent and the required return is 18 percent.

Instructions: 

Complete the pro forma and determine total cash flows for each year of project’s life. 

Would you recommend to accept or reject the project? Explain your decision