Problem: A private software firm is considering an online software store to sell its software directly to the public. The following information relates to the proposed store. The initial investment needed to start the service; including the installation of the additional phone lines and computer equipment will be $5 million. These investments are expected to have a life of 4 years and the market value of the investments at the end of the project's life is $1 million. The investments will be depreciated using a straight line to zero book value over the 4 year life. The revenues in the first year are expected to be $3 million, growing 20% in year 2 and 10% in the two years following. The salaries and other benefits for the employees are estimated to be $250,000 in year 1 and are expected to grow 10% a year for the following three years. The net working capital, which includes the additional inventory the firm has to maintain to service online orders and the accounts receivable associated with selling software on credit, is expected to start in year 1 and amount to 15% of revenues. At the end of year 4, the investment in NWC will