Determine the npv and the irr for the project

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Please help with the below questions:

Based on the following project assumptions, determine the NPV and the IRR for the project.

Equipment invoice $300,000

Transportation and installation $ 85,000

Training $ 20,000

Projected incremental increase in sales in YR 1 $245,000

Sales escalate at a rate of 9% per year after YR 1.

Expenses in YR 1 are projected to be 32% of the capital investment.

Expenses escalate at a rate of 4% per year after YR 1.

Depreciation is straight line, 5 years.

Salvage value at the end of YR 3 $ 88,000

WACC 10%

Project life 3 years

Tax rate 40%

Tax credits may be used against other income.

Reference no: EM132147218

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