Analysis in Real Terms (Type A).

You are evaluating a new business where you will have the following information:

Initial investment: $3,000,000, salvage value: $800,000

Income: $850,000 today, growing 3% above inflation.

Costs:

-Manpower $20,000 today (growth differential: -1%) above inflation.

- Materials: $15,000 today growing: 5% above inflation.

Useful life: 5 years

Depreciation: Accelerated depreciation at 200%

Tax rate (ISR): 30%

Inflation of the general price index: 9%

Nominal MARR after taxes: 12%

The Project ________________(yes or no) is viable because it has a NPV of $__________ and an IRR of _________________% (Use VPN format of 99,999,999.99 and TiR 99.99)

procedure by hand, do not use excel