North Coast Clothing Company is considering manufacturing a new style of shirt, whose data are shown below. The equipment to be used would be depreciated by straight line over its 3-year life and would have a salvage value $12,000, and $10,000 in new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. However, this project would compete with other products and reduce their pre-tax annual cash flows. What is the project's NPV and IRR? Should the company accept or reject the project and why?

Please use Excel to solve

Cost of capital	10.0%
Pre-tax cash flow reduction for other products	$5,000
Investment cost	$80,000
Sales revenues, each year for 3 years	$67,500
Annual operating costs (excl. deprec.)	$25,000
Tax rate	21.0%