Capstone Quarry is analyzing whether a new contract proposal will be a good idea. The relevant data is shown below. The net working capital will be paid in the same time period as the cost of the equipment and will be recovered at the end of the project. Remember to calculate the after-tax gain or loss of salvage as part of your terminal cash flow.

Capstone Quarry Company Contract Analysis
Amount of Rock Salt per Year	23,000 Tons
Revenue per Ton	$ 145
Cost of Equipment	$ 2,750,000
Life(years)	5
MACRS Class	5
Fixed Cost per year	$ 475,000
Var Cost/Ton	$ 85
Actual Salvage	$ 105,000
Change in NWC	$ 85,000
Required Return	12%
Tax Rate	34%

Find the cash flows for each year

Net present value

Payback period

Discounted payback

IRR

MIRR