A mining company purchased $5 million in new construction equipment for a new project to begin in the current year. It i

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A mining company purchased $5 million in new construction
equipment for a new project to begin in the current year. It is
expected that the project will yield revenues of $10 million in the
first year and increase by 5% until the end of year 5. The related
variable costs will be 75% of the revenue generated. The fixed
costs will remain at $950,000 per annum. The marginal tax rate is
45% and the required rate of return for this new venture is 15%.
Based on the CRA schedule, the mining equipment is eligible for 20%
depreciation.
A) What is the estimated operating cash flow for this
project?
B) What is the NPV?
C) What is the IRR?
D) Should we pursue this project?