Please show each working properly with an explanation for each step so that I understand

7. Consider a project with an Initial Investment $1,000 (depreciate straight line to $0 over 4 years). You can sell the equipment after tax for $140 Revenues $2,000, costs $1,600. Tax rate 40%Net working capital investment $100 time 0, another $20 at time 1, a liquidation of $5 in time 3 and entire balance at the end of the project Discount rate: 10% What are NPV and IRR 1 2 3 0 -1000 4 +140 Initial NWC -100 -20 +5 +115 OCF 340 340 340 340 340 345 595 Total -1100 320 IRR = 15.1% NPV = $137.5 OCF: (2000-1600-250)*.6 + 250 = 340 =