Please DO NOT use Excel (if you do, please write down the formulas you used in Excel!PLEASE DO NOT USE EXCEL (or if you do, please write down the formulas you used step by step) !

Fame Inc. is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero-salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Annual sales revenues and operating costs are expected to be constant over the project's life. Do you recommend to accept or reject this project? Justify your opinion. WACC 10.0% Net investment in fixed assets (basis) 75,000 Required net operating working capital 15,000 Straight-line depreciation rate 33.333% Annual sales revenues 75,000 Annual operating costs (excl. depreciation) 25,000 Tax rate 35.0%