Please, this is the fifth time I am posting this question, allthe answers I am getting are inaccurate because the experts are notputting all value into account like the loan interest rate, taxrate, depreciation, annual cash outflows, salvage value, annualcash inflows, and discount rate.

please also support the answer with a full interpretation andthe step by step approach in solving the answer. thank you:)

In this paper, please discuss the following case study. In doingso, explain your approach to the problem, support your approachwith references, and execute your approach. Provide an answer tothe case study’s question with a recommendation.

This case continues following the new project of the WePPROMOTECompany, that you and your partner own. WePROMOTE is in thepromotional materials business. The project being considered is tomanufacture a very unique case for smart phones. The case is verydurable, attractive and fits virtually all models of smart phone.It will also have the logo of your client, a prominent, localcompany and is planned to be given away at public relations eventsby your client.

As we know from prior cases involving this company, more andmore details of the project become apparent and with more precisionand certainty.

The following are the final values to the data that you havebeen estimating up to this point:

• You can borrow funds from your bank at 3%.
• The cost to install the needed equipment will be $105,000 andthis cost is incurred prior to any cash is received by theproject.
• The gross revenues from the project will be $25,000 for year 1,then $27,000 for years 2 and 3. Year 4 will be $28,000 and year 5(the last year of the project) will be $23,000.
• The expected annual cash outflows (current project costs) areestimated at being $13,000 for the first year, then $12,000 foryears 2, 3, and 4. The final year costs will be $10,000.
• Your tax rate is 30% and you plan to depreciate the equipmenton a straight-line basis for the life of the equipment.
• After 5 years the equipment will stop working and will have aresidual (salvage) value of $5,000).
• The discount rate you are assuming is now 7%.

Requirements of the paper:

• Perform the final NPV calculations and provide a narrative ofhow you calculated the computations and why.
• Then provide a summary conclusion on whether you shouldcontinue to pursue this business opportunity.
• Research, using at least three sources other than the textbookmaterials that support your calculations and conclusions.

Papers will be assessed on the following criteria:

• Provide the final, accurate NPV calculations.
• A narrative on how the NPVs were calculated. The narrativeshould include how the data relating to depreciation and its taxconsequences affect the cash flow of the project.
• Supporting narrative based on research of sources other thanthe textbook materials.
• Provide a conclusion on whether this business opportunityshould be pursued.