Production cif the implants will require $$1\mathrm{.}6$ million in net working capital to slart and

ariditional net working capital investments each year equal to $15$ percent of the

projected sales increase for the following year. Total fixed costs are $$2\mathrm{.}4$ million per

year, variabils production costs are $$265$ per unit, and the units are priced at $$395$

each. The equipment needed to begin production has an installed cost of $$12\mathrm{.}9$

minion. Because the implants are intended for professlonal singers, this equipment is

considered industrial machinery and thus qualifles as seven$-$year MACRS property

$($MACRS schedule$)$ In five years, this equipment can be sold for about $20$ percent of

its acquisition cost. The tax rate is $21$ percent tax and the required return is $18$ percent

a$.$ What sis the NPV of the projuct?

Note: Do not round intermediate calculations and enter your er in dollars,

not millions of dollors, rounded to $2$ decimal places, e$.$g$.,1,2,4,507\mathrm{.}39.$

b$.$ What is the IRR?

Note: Do not round intermediate calculations and enter your ant war as a

percem rounded to $2$ decimal places, e$\mathrm{.}9,32\mathrm{.}16.$

a NPV