Inflation Rate $3\mathrm{.}0\%$

Discount Rate $($Nominal$)10\mathrm{.}0\%$

Tax Rate $30\mathrm{.}0\%$

Year Now $200120022003$

New Gross Profit $17\mathrm{.}4120\mathrm{.}5021\mathrm{.}11$

Old Gross Profit $15\mathrm{.}5516\mathrm{.}0216\mathrm{.}50$

Incremental Gross Profit

Incremental Depreciation $1\mathrm{.}201\mathrm{.}040\mathrm{.}90$

Overhead Cost $1\mathrm{.}001\mathrm{.}001\mathrm{.}00$

Prelim. Engineering Costs $1\mathrm{.}00$

Pretax Incremental Profit

Tax Expense

After$-$tax Profit

Capital Expenditures $5\mathrm{.}00$

Depreciation $1\mathrm{.}201\mathrm{.}040\mathrm{.}90$

Change in Net Working Capital $0\mathrm{.}310\mathrm{.}250\mathrm{.}22$

Free Cash Flow

NPV $<strong>=\; ....\; ?</strong>$

IRR $<strong>=.....?</strong>$