If your firm were to consider investing in the following project, calculate the NPV, IRR, and...

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If your firm were to consider investing in the followingproject, calculate the NPV, IRR, and Payback values. Would this bea good investment for your company? PROJECT CASH FLOWS AND VALUESFOR A PROPOSED NEW PRODUCTION FACILITY: In year 0, invest$1,000,000 for a new production facility. The project will alsorequire an investment of $50,000 into Net Working Capital. (Assumeregular conditions of liquidation at project end.) The project isforecasted to last 4 years. Facility investment is depreciatedstraight-line to zero over the project life. Sales forecast peryear is $400,000. Production costs per year is $150,000. Income taxrate is 41%. Forecasted salvage value for the production facilityat year 4 is $200,000. Please show work. Cost of Capital is12.842%

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Time line 0 1 2 3 4 Cost of new machine 1000000 Initial working capital 50000 Initial Investment outlay 1050000 Sales 400000 400000 400000 400000 Profits Salesvariable cost 250000 250000 250000 250000 Depreciation Cost of equipmentno of years 250000 250000 250000 250000 Pretax cash flows 0 0 0 0 taxes Pretax cash flows1tax 0 0 0 0 Depreciation 250000 250000 250000 250000 after tax See Answer

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If your firm were to consider investing in the followingproject, calculate the NPV, IRR, and Payback values. Would this bea good investment for your company? PROJECT CASH FLOWS AND VALUESFOR A PROPOSED NEW PRODUCTION FACILITY: In year 0, invest$1,000,000 for a new production facility. The project will alsorequire an investment of $50,000 into Net Working Capital. (Assumeregular conditions of liquidation at project end.) The project isforecasted to last 4 years. Facility investment is depreciatedstraight-line to zero over the project life. Sales forecast peryear is $400,000. Production costs per year is $150,000. Income taxrate is 41%. Forecasted salvage value for the production facilityat year 4 is $200,000. Please show work. Cost of Capital is12.842%