Abel Athletics is considering purchasing new manufacturing equipment that costs $1,300,000 and is expected to improve cash flows by the following:

Abel Athletics is considering purchasing new manufacturing equipment that costs $1,300,000 and is expected to improve cash flows by the following:•$500,000 in year 1•$350,000 in year 2•$475,000 in year 3•$450,000 in year 4•$300,000 in year 5 Key financial metrics for this capital budgeting project have been calculated and provided by the finance department (see below). A 14% rate of return and a payback period of less than 5 years are required for the project. These key metrics must include a payback period, net present value, and internal rate of return. Use 6% as the weighted average cost of capital. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 (1,300,000) 500,000 350,000 475,000 450,000 300,000 438,596 269,314 320,611 266,436 155,811 (800,000) (450,000) 25,000 475,000 775,000 In a memo to the CFO, discuss the metrics, and make a recommendation regarding whether to accept or reject the project