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Pirate Corporation is considering a project. The data for the 5 year project are given...

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Pirate Corporation is considering a project. The data for the 5 year project are given below. Should the manager of Pirate Corporation accept this project? Use the NPV criteria to make your decision. Sales revenue, each year: $80,000 Variable costs, each year: $20,000 Fixed costs, each year: $10,000 Initial outlay (i.e. initial cost of project): $100,000 Depreciation, each year: $20,000 Sunk costs: $33,000 Increase in NOWC: $15,000 (this will be recovered at the end of the project) Tax rate: 30% WACC: 8% The project should be accepted because it has an NPV of $25,910 The project should be accepted because it has an NPV of $36,569 The project should be accepted because it has an NPV of $41,441 The project should be accepted because it has an NPV of $50,359 The project should be accepted because it has an NPV of $58,910

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