Quantitative Problem: Sunshine SmoothiesCompany (SSC) manufactures and distributes smoothies. SSC isconsidering the development of a new line of high-protein energysmoothies. SSC's CFO has collected the following informationregarding the proposed project, which is expected to last 3years:

• The project can be operated at the company's Charleston plant,which is currently vacant.
• The project will require that the company spend $3.8 milliontoday (t = 0) to purchase additional equipment. For tax purposesthe equipment will be depreciated on a straight-line basis over 5years. Thus, the firm's annual depreciation expense is $3,800,000/5= $760,000. The company plans to use the equipment for all 3 yearsof the project. At t = 3 (which is the project's last year ofoperation), the equipment is expected to be sold for $1,450,000before taxes.
• The project will require an increase in net operating workingcapital of $730,000 at t = 0. The cost of the working capital willbe fully recovered at t = 3 (which is the project's last year ofoperation).
• Expected high-protein energy smoothie sales are as follows:

  Year	Sales
  1	$2,600,000
  2	7,400,000
  3	3,800,000

• The project's annual operating costs (excluding depreciation)are expected to be 60% of sales.
• The company's tax rate is 40%.
• The company is extremely profitable; so if any losses areincurred from the high-protein energy smoothie project they can beused to partially offset taxes paid on the company's otherprojects. (That is, assume that if there are any tax creditsrelated to this project they can be used in the year theyoccur.)
• The project has a WACC = 10.0%.

What is the project's expected NPV and IRR? Round your answersto 2 decimal places. Do not round your intermediatecalculations.

NPV	$
IRR	%