ASAPP Please solve correctly

Based on a feasibilaty study conducted at a cost of 565,000 , Stiv Manufacturing is considesing buldemel a new ptoduction facility the conipany has asked you fo evaluate whether the project should be undertaken. To help with your anolysis, management has provided vou with ine folioving infonmation. The project will require an initial investment of $1.85 mitivn in a few factory. The compony has adopted 6 y ir phanning horizoit after which it indends ta ie evaluate the investment. The factory wili be built on a block of lond that is besing puchiosed for $13 milion tarid values are projected to grow at an average rate at 7% per annum tot the foreseeable future. The project will also require an additional inveutment of sooo.0o0 in riet working cipital Net sevenues have been projected at $2 mil per annum over the six year period. Finally. the factory is expected to have is salvage value of $700,000 at the end af the project and the inalyis is to be undertaken on the assumption that the land and the factory will all be sold at the end of the project. The firm's tax rote is 35% and its cost of capital is 126 and the cCA rate to be used for the foctory is 25 . Required: Using the net present value (NPV) method advise the compatly whether the proyent should be undertaken. (20 maiks)