Answer all parts complete and with full steps with all inputs and outputs mentioned. Do it with hands (No excel allowed). Handwritten only otherwise dont attempt.

KKM is considering a project that will require the purchase of S$790,000 in new equipment. The equipment will be depreciated straight-line to a zero over the 7-year life of the project. The equipment however can be scraped at the end of the project for 5 percent of its original cost. Annual sales and operating costs from this project are estimated at S$440,000 and S$105,000 respectively. Net working capital equivalent to 20 percent of annual sales will be required (at the beginning) to support the project. All of the net working capital will be recouped at the termination of the project. The required rate of return is 16.03 percent and the tax rate is 25 percent. a) What is the total amount of initial investment? b) What is the amount of the after-tax salvage value of the equipment? c) What is the profitability index of the project? Is the project acceptable? Why