After knowing the demand for year 1 (6,750 units per year) for the next project, it has been given the information that the population is growing at 20% per year, that the price to sell the product is $4, variable costs of $1.5 per unit and annual fixed costs of $12,000. The optimal size was 11,000 units per year. With these data determine the Net Present Value for a 5-year life horizon, the Benefit-Cost ratio and the Internal Rate of Return knowing that the investment amounts to $25,000 and that a similar business has an annual return of 22%.

What is the Net Present Value? What is the Benefit-Cost Ratio? What is the Internal Rate of Return?