A company expects to sell $950,000 of a new product the first year and
$1,500,000 each year thereafter. Direct costs including labor &
material will be 55% of sales. Indirect incremental costs are
estimated at $80,000 a yar.  A new plant will cost a total of
$1,000,000 to be depreciated straight line over the next 5 yrs. The
new line will require an additional $200,000 net investment for
inventory & receivables.  No additional investment in building and
land. The firm's marginal tax rate is 35% and its cost of capital is
10%.

How would I prepare a statement showing incremental cash flows for
this project over an 8-year period?

How would I calculate the Payback Period (P/B) and the NPV for the project?

Based on the P/B and NPV should the project be accepted and why?  I am
working with a firm that does not accept projects with live over three
years.

If additional investment in land and building is required, how would
this affect my decision.

Help! I need to work through this calculation ASAP. Could a researcher
respond early this week?