Edwardbelievesthathecangetbankfinancingfor75%oftheassets(equipment,building, and working capital) over a seven-year period at an APR of 7% compounded month-ly. He plans to put in the rest of the money with a loan from his family, which he will pay backin 10 equal yearly installments with no interest. Edward estimates the business can be sold for$900,000 at end of Year 10.

IfEdwardfindsthathisproductqualifiesforaninvestmentcreditof25%ofhisproject cost (equipment, building, and working capital) in the above scenario, which he canclaim as income at the end of the first year for which he will have to pay taxes at the regularrate in the first year:

a. What will be the IRR for the project?

b. What will be the NPV for his investment if the MARR was 11%?

c. What will be the EUAB that the business will be able to generate over the 10-yearperiod?