K. Marge's Campground is considering adding a miniature golf course to its facility. The course equipment she wants would cost $500,000 that would be depreciated using an ACRS 8-year class, but the equipment will be sold at the end of year 4 for $250,000 and it will be replaced with a new one then. The depreciation rates for years 1-4 are 20%, 35%, 12%, and 10% respectively. Marge estimates the income from the golf fees would be $280,000 a year with $100,000 variable cost. The fixed cost would be $50,000. The project will require $40,000 of net working capital which is recoverable at the end of the project. Margo also hired a consulting firm to conduct a feasibility study for the project that will cost her $50,000. Assume a 20% marginal tax rate for the company and the projects required rate of return of 12 percent. a. Calculate annual operating CFs for the miniature golf facility for years 1-4. Show your work. b. What is the BV of the equipment at the end of year 4? Is there a tax liability or tax credit on the sale of the equipment? Calculate total CF for year 4 including the Terminal value. c. What is the IRR of this project? Would you accept this project