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

Erma's Beauty Supply, Inc. is considering expanding the company's existing store. Erma's wants to lease

the office space next door. Erma's must spend $$140,000$ on new equipment to expand. The equipment is

expected to have a zero$-$salvage value and an $8-$year useful life. Erma's believes that the equipment will be

worthless at the end of its $8-$year life. Erma's believes it will have to increase net working capital by $$15,000$;

this amount will be recovered at the end of $8$ years. Last month, Erma's spent $$18,000$ to conduct a survey

of potential new customers in the area surrounding the current store to see if there was sufficient demand

for a larger store. Erma's estimates that net revenue will increase by $$135,000$ per year in the new store for

eight years. The direct expenses incurred to make those sales are $$75,000,$ including rent. The lease Erma's

is considering signing is for $8$ years. Erma's Beauty Supply has a marginal tax rate of $40\%$ and has a

weighted average cost of capital of $10\mathrm{.}0\%.$

What is the IRR of this project?

What is the NPV of this project?