USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING TWO $(2)$ QUESTIONSUSE THE TABLE BELOW TO ANSWER THE FOLLOWING TWO $(2)$ QUESTIONS

Lee, Inc. is considering the production of a new line of soft drinks at its Springfield, IL plant. The CFO of

Lee, Inc. is provided with the following information on the new project:

The expansion will require the immediate purchase of new machinery for $$56,000,000.$

The firm has spent $$2,500,000$ to train workers to use the new machinery.

The incremental sales from this project are expected to be $$21,500,000$ per year. The incremental

operating expenses $($excluding depreciation$)$ are expected to equal $$11,500,000$ per year.

The company uses straight$-$line depreciation. The project has an economic life of $10$ years. The

machinery has a salvage value of $$4,000,000$ and will be sold for that amount at the conclusion of

the project.

Because the machine will allow the company to decrease its average monthly inventory levels, the

project will decrease net working capital by $$2,500,000$ at the beginning of the project. This

amount will need to be replaced at the end of the project.

Lee Inc.$\text{'}$s marginal tax rate is $40\%.$

Lee Inc.$\text{'}$s weighted average cost of capital $($WACC$)$ is $12\mathrm{.}5\%.$

What is the IRR of this project?

What is the NPV of this project?

ABC Industries is considering a project that has the following cash flows:

The project has a payback period of $3\mathrm{.}26$ years $($use this information to find $???$ in the table above$).$ The

firm's cost of capital is $17\%.$

The IRR of the project is

$\%.$

The project's net present value $($NPV$)$ is $