ABC Inc is considering a new capital budgeting project that will last for 3 years. Initial investment outlay for the project equipment is expected to be $110,000. The equipment will be straight-line depreciated over 3 year period. The expected market value of project assets is forecasted to be $50,000 when the project is liquidated at the end of the 3rd year. Project will require $5,000 net working capital investments in years 1 and 2. ABC Inc's cost of capital is 12% and the project does not have a distinct risk profile.

Based on extensive research, analysts have prepared the following incremental cash flows:

1. The end of year 1 after tax project cash flow is?
2. The after tax project cash flow including the terminal cash flow for the project in year 3 is?
3. The NPV for ABC Inc's project is?
4. The IRR for the projectis?

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Year Sales (Revenue) $100.000 S100.000 S100.000 50.000 S50.000 S50.000 $36,667 S36,667 S36,667 S13.333 S13.333 $13,333 S4.667 S4.667 $4.667 $8.666 $8.666 $8.666 $36,667 S36,667 S36,667 Cost of Goods Sold (50% of sales Depreciation EBIT Taxes (35% EBIT (1-T) Depreciation S5.000 -S5.000 Capital Expenditure S110,000