Question $5$

$9$ pts

The Juniper Network Company is considering a new $5-$year expansion project that requires an initial fixed investment of $$3\mathrm{.}0$ million. The fixed asset will be depreciated straight line to zero over its five year tax life, after which time it will be worthless. The applicable tax rate is $22\%.$

Estimated annual sales for the project are $$2\mathrm{.}2$ million with annual costs of $$1\mathrm{.}15mm.$ The project will also require an initial investment in NWC of $$140,000.$

The NPV of the project at a required return of $18\%$ is estimated to be :

The IRR of the project is $\%.$ At this discount rate, that is$,$ the IRR, you will

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