Aria Acoustics, Incorporated $($AAI$),$ projects unit sales for a new $7-$octave voice emulation

implant as follows:

Production of the implants will require $$1,480,000$ in net working capital to start and

additional net working capital investments each year equal to $15$ percent of the

projected sales increase for the following year. Total fixed costs are $$3,800,000$ per year,

variable production costs are $$143$ per unit, and the units are priced at $$325$ each. The

equipment needed to begin production has an installed cost of $$18,500,000.$ Because

the implants are intended for professional singers, this equipment is considered

industriall machinery and thus qualifies as $7-$year MACRS property. In frve years, this

equipment can be sold for about $20$ percent of its acquisition cost. The tax tate is $23$

percent and the required return is $17$ percent. $($MACRS schedule$)$

a$.$ What is the NPV of the project? $($Do not round intermediate calculations and round

your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the IRR of the project? $($Do not round intermediate calculations and enter

your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$