vy is considering a new project. The project will require $2,000,000 for new fixed assets. There is a total of 75,000combjned increase in inventories and account receivables which is partly financed by 25,000 increase is accounts payables. The project has a 6 yr life span. The fixed assets will be depreciated using 7 year MACRS to zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 10% of their original cost. The net working capital returns to its original level and the end of the project. The project is expected to generate annual sales of 3,000 units and the selling price per unit is $1,300 while the variable cost per unit is expected to be $900. Annual fixed costs are expected to be $45,000. The tax rate is 35% and the required rate of return (cost of capital) is 15%. Calculate the projects initial investment costs. annual incremental operating cash flows, and terminal cash flows. What are the projects npv and irr