Question: I need help on the following problem: The initial investment of PP&E is $11 million of a project, over 8 years it will depreciate on

I need help on the following problem:

The initial investment of PP&E is $11 million of a project, over 8 years it will depreciate on a SL basis. PP&E will have no value after the 8 years and it will be thrown out. 30 percent is the tax rate profit, also 12 percent is the discount rate.

mkt size 1.5 million
yearly mkt share 12 percent
yearly unit price $50
yearly unit var. cost $32
yearly fixed cost $250,000

Find net present value and whether or not the project should be accepted

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