A project costs $10,000 to pursue today and generates pre-tax savings of $1,500 per year for the foreseeable future. The marginal tax rate is 35%. The proect also requires an initial NWC investment of $300 which will not be recouped.
A) If the required return is 8%, what is the NPV?
B) What is the IRR? (NOTE: this does NOT require guess and check)