evaluating single project

1. You are faced with making a decision on a large capital investment proposal. The capital investment amount is $640,000. Estimated annual revenue at the end of each year in the eight-year study period is $180,000. The estimated annual year-end expenses are $41,000 starting in year one. These expenses begin decreasing by $4,000 per year at the end of year four and continue decreasing through the end of year eight. Assuming a $22,000 market value at the end of year eight and a MARR = 12% per year, answer the following questions: a) What is the PW of this proposal? b) What is your conclusion about the acceptability of this proposal