The case Macarony Inc. Macarony Inc. is considering making a capital expenditure for a project that would have an eight-year life and require a $2,400,000 investment in equipment. At the end of eight years, the project would terminate and the equipment would have no salvage value. The project would provide operating income each year as follows: Sales $3,000,000 Variable expenses 1,800,000 Contribution margin 1,200,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $700,000 Depreciation 300,000 Total fixed expenses 1,000,000 Operating income $ 200,000 The companys discount rate is 12%. Required 1. Compute the net annual cash inflow from the project. 2. Compute the projects net present value. Is the project acceptable? 3. Find the projects IRR to the nearest whole percentage point. 4. Compute the projects payback period. 5. Compute the projects simple rate of return. 6. Explain which department in the organization hierarchy is responsible for making a capital budget decision, a purchase of the asset, a disposal of the scrap. 7. What would be your decision point if a new equipment require a layoff of 24 direct labour workers?