maining Time: 1 hour, 15min, SL Gestion Completion Status 1 2 5 Ferns N Petals is an online gift portal that offers a wide range of flowers, plants, gifts and cake in Dubai. It is considering Investment in a new project to produce a a wider range of vegan cakes, The project requires an initial investment of $150,000 for purchase of land with factory building and an additional working capital of $10,000. The cost of capital for the project is 15%. The project's cash flows are expected to grow at a constant rate of 5% per year beyond year 3. 3 The financial information for the project is given below: All figures are in 5) Years 0 2 Earnings After Taxes 26,250 37,500 (EAT) or Net Income (NI) Depreciation 25,000 20,000 48,750 15,000 Required: a. Calculate the total investment at Year O. (2 marks) b. Calculate the cash flows for the project for Years 1, 2 and 3. (6 marks) Calculate the terminal value at the end of Year 3. (2 marks) d. Calculate the NPV for the project including terminal value. (8 marks) 0. Should the company invest in this project based on the NPV of the project? Give one reason for your answer. (2 marks) THEIDIMO Macbook