Glamazon, Inc. is considering a project that would have a ten-year life and would require a $2,260,000 Investment in equipment. At the end of ten years, the project would terminate, and the equipment would have a salvage value of $20,000. The project would require additional working capital $25,000 in the form of an increase in the minimum balance required by their bank and this working capital would be released at the end of the project. The project would provide net income each year as follows: $2,000,000 1.100.000 900,000 Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses Out of Pocket Costs Depreciation Net Income $500,000 150.000 650,000 $250,000 All of the above items, except for depreciation, represent cash flows. The company's required rate of retum is 10% and the required payback period is 5 years. Required: 1. Compute the project's net present value. 2. Compute the project's internal rate of return, to the nearest percentage. 3. Compute the project's payback period. 4. Compute the simple rate of return. 5. Should the company accept the project? Why or why not