A food processing company is considering replacing essential machinery. Cost and relevant cash flow details are provided in the table at the right. The company requires an $11\%$ return on its capital. Students must do their own work, with no help$/$solutions provided by others.

$$232,279$

Question $6$c

$86$

a$)$ What is the present value of the yearly cash flows? Use a Time Value of Money function for full credit. $($round to nearest dollar$)$

Cost of Project

Yr $1$ cash flow

Yr $2$ cash flow

Yr $3$ cash flow

Yr $4$ cash flow

Yr $5$ cash flow

Yr $6$ cash flow

Yr $7$ cash flow

$($$$2,000,000)$

$(200,000)$

$(75,000)$

$90,000$

$150,000$

$600,000$

$1,400,000$

$2,500,000$

Us

cor

Wit

Hov flou

b$)$ N

$88$

$12\mathrm{.}83\%$

$6$ points

b$)$ What is the net present value of the project? $($round to nearest dollar$)$

NPV

Subt prese

c$)$ Int

$90$

$92$

c$)$ What is the internal rate of return of the