Fast Manufacturers PLC have reconsidered their new project and the initial investment required of £1,000,000...

Fast Manufacturers PLC have reconsidered their new project and the initial investment required of £1,000,000 is now 25% less than the original conception. The project will remain will have a three year life span and

have no scrap value.

However, this new conception has operating costs of £150,000 in year 1, and increasing by 5% due to inflation the following years. The gross revenue will also be higher across the board. The new project conception is

forecasting a gross revenue of £525,000 in year 1 and again increasing with inflation 5% for years 2 and 3.

If the cost of capital has remained at 14%, should Fast Manufacturers PLC go ahead with the revised project?