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Toowoomba Terriers, a local pet food company, is looking to produce a new tinned food for the growing pet food market. It is expected to be a complete nutritional package which promotes healthy coats and teeth. The following information will help you evaluate the project. It will cost $1.65 million to build the factory required to produce the food Working capital of $425,000 is required to support the day-day operations. Sales are expected to start at 55,000 tubs a year. Selling for $16 per tub. Sales are expected to grow at 4% per year, compounding. This will happen because of the $72,000 per year spent on marketing A nutrition scientist who created the recipe charged $30,000 for their efforts. Other COGS are $145,000 per year. Variable costs are $2.50/tub, expected to grow at 5% per year. Depreciation is straight line to zero Tax is 30% The life of the project is 8 years The all-important discount rate is 11.5% Use the template shown below to answer the following questions: a) What is the NPV for this project. While writing answer for NPV, put + sign for positive NPV and - sign for negative NPV. Also, include TWO decimal points in your answers. b) What is the IRR for this project? (Note* In the template provided CFOA refers to "Operating Cash Flow")

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