Company ABC is looking at doing the below project. which is expected to have the below first-year financials, Net working capital is paid at time zero.

Revenue: $58 million

EBITDA: $14 million

Depreciation & Amortization: $2.5 million

CapEx: $2 million

Tax Rate: 30%

Net Working Capital: $7 million

It is expected that over 10 years the EBITDA margin will increase by 0.4% a year while depreciation, CapEx, and Networking capital will remain a constant % of sales. Revenue will grow by 3% a year.

After 10 years of business, the project will be finished and Net Working Capital returned.

If your required rate of return is 11% at what initial cost would you accept the project?

Provide a spreadsheet to support your calculations and provide a short explanation of your decision and findings in the same spreadsheet, 4-6 sentences should be sufficient. Ensure the spreadsheet allows me to adjust growth, Ebitda margin, and required rate of return assumptions to see the updated NPV and IRR.