The Lunar Mining Group Inc. is tasked with evaluating a new project to extract "rare moon" elements from the moon's north polar area. If accepted the project is expected to operate for 4 years, and thus generate operating cash flows for years t=1 through t=4. The project will have an installed cost of LC 200 million (LC being Lunar Credits, the official lunar currency. An upfront t=0 cost of LC 30 million must also occur for New Working Capital, which will be fully recovered at year t=4. The estimated salvage value at t=4 is estimated to be LC 40 million. The project assets will fall into a 3 year MACRS depreciation schedule of : Year 1=33% Year 2=45% Year 3=15% Year 4 +7%. Expect that the project increases sales revenue by LLC 110 million per year, and operating cost by LC 40 million per year for each of the four operating years (t=1 through t=4). THe cost of capital has been estimated to be r=12%. The lunar corporate tax rate is 40% HINT: short depreciation schedules have a large depreciation write-off for year 2 which can make pre-tax income negative, but just do the math as you would for any other year This is a stand alone project. Calculate the NPV and IRR. Should the project be accepted or rejected?