3. Calculate the NPV and IRR using the data from Table 2. Should the project be accepted?

File Home Insert Page Layout Formulas Data Review View * Cut Calibri 11 Wrap Text General En Copy Paste Format Painter B IE E Merge & Center . Clipboard Font Alignment 042 A B C D E F G H 49 1 Table 1 50 MACRS 51 Depreciation $350 52 Year 7 Year class Depreciation (in millions) 53 1 14.29% $ 50.02 54 AWN 24.49% $ 85.72 55 17.49% $ 61.22 56 12.49% 43.72 8.93% $ 31.26 58 8.92% $ 31.22 59 8.93% $ 31.26 60 8 4.46% $ 15.61 61 62 2 Table 2 63 A B C D E F Tax in After tax Cash from Cash outflow, Depreciat Taxable $Millions Cash Revenue in expenses in ion in Income in 27.5% Flow In 64 Year $Millions $Millions $Millions $ Millions rate $Millions 65 o $ 66 1 $ 1,800.00 $ 1,728.00 $ 50.02 $ 21.99 6.05 $ 65.95 67 2 $ 1,900.00 1,824.00 $ 85.72 $ (9.72) $ (2.67) $ 78.67 68 3 $ 2,000.00 S 1,920.00 $ 61.22 $ 18.79 $ 5.17 $ 74.83 69 4 $ 2,100.00 2,016.00 $ 43.72 $ 40.29 $ 11.08 $ 72.92 70 5 $ 2,200.00 $ 2,112.00 $ 31.26 $ 56.75 $ 15.60 $ 72.40 71 6 $ 2,300.00 $ 2,208.00 $ 31.22 $ 60.78 $ 16.71 $ 75.29 72 7 $ 2,400.00 2,304.00 $ 31.26 $ 64.75 $ 17.80 $ 78.20 73 8 $ 2,500.00 2,400.00 $ 15.61 $ 84.39 $ 23.21 $ 76.79 74 9 $ 2,600.00 S 2,496.00 $ 104.00 $ 28.60 $ 75.40 75 10 $ 2,700.00 2,592.00 $ $ 108.00 $ 29.70 $ 78.30 76 11 $ 2,600.00 2,496.00 $ $ 104.00 $ 28.60 $ 75.40 77 12 $ 2,500.00 2,400.00 $ 100.00 $ 27.50 $ 72.50 78 13 $ 2,400.00 S 2,304.00 $ 96.00 $ 26.40 $ 69.60 Hi |Instructions Cost of Capital Capital Budgeting Ready O Type here to search Oe W