You are provided with the projected income statements for a project: Year 1 2 3 4 Revenues ( MUR '000) 10,000 11,000 12,000 13,000 Less Cost of Goods Sold ( MUR '000) 4,000 4,400 4,800 5,200 Less Depreciation ( MUR '000) 4,000 3,000 2,000 1,000 Earnings Before Interest and Tax ( MUR '000) 2,000 3,600 5,200 6,800 The tax rate is 40%. The project requires an initial investment of MUR 15 million and an additional MUR 2 million at the end of year 2. The working capital is anticipated to be 10% of revenues and the working capital investment has to be made at the beginning of each period. Estimate the free cash to the firm for each of the 4 years, the payback period for investors in the firm, and the net present value if the cost of capital is 12 %? Would you accept the project?