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.