PLEASE ANSWER BOTH POINTS (1 AND 2), PROPERLY BREAKDOWN POINT NUMBER 2 WITH THE CORRESPONDING OPERATIONS AND ALL THE RESULTS.

Instructions An evaluation is needed for a sock production project that requires an initial investment of $50,000,000, of which 80% corresponds to depreciable fixed assets, and 20% to working capital. The unit production cost is $10,000, and a unit sale value of $13,500 is estimated. The market study revealed a potential demand of 20,000 units for the first year. The fixed assets are depreciated straight-line over a useful life of 10 years. Operational expenses are estimated at $4,000,000 for the first year. The fixed costs amount to $10,000,000 for the first year. The following increments are estimated: sales increase by 2% annually, variable unit cost by 3% annually, unit sale price by 3% annually, operational expenses by 6% annually, and fixed costs by 5% annually. The project has a useful life of 5 years.

1. Build the project's cash flow. 2. Calculate the Internal Rate of Return (IRR) and determine if the project is profitable or not, considering an opportunity rate of 30%.