WACC	8%
	Initial Outlay	CF1	CF2	CF3	CF4	CF5
	($65,000,000)
Cash Flows (Sales)		$50,000,000	$45,000,000	$65,500,000	$55,000,000	$25,000,000
- Operating Costs (excluding Depreciation)		$25,500,000	$25,500,000	$25,500,000	$25,500,000	$25,500,000
- Depreciation Rate of 20%		(13,000,000)	(13,000,000)	(13,000,000)	(13,000,000)	(13,000,000)
Operating Income (EBIT)		37,500,000	32,500,000	53,000,000	42,500,000	12,500,000
- Income Tax (Rate 35%)		13,125,000	11,375,000	18,550,000	14,875,000	4,375,000
After-Tax EBIT		24,375,000	21,125,000	34,450,000	27,625,000	8,125,000
+ Depreciation		13,000,000	13,000,000	13,000,000	13,000,000	13,000,000
Cash Flows	($65,000,000)	37,375,000	34,125,000	47,450,000	40,625,000	21,125,000
			Select from drop downs below:
	NPV	$9,785,570.71	ACCEPT
	IRR	50%	ACCEPT

B. What are the implications of these calculations? In other words, based on each of the calculations, and being mindful of the need to balance portfolio risk with return, would you recommend that the company pursue the investment? Why or why not? Be sure to substantiate your claims. C. What is the difference between NPV and IRR? Which one would you choose for evaluating a potential investment and why? Be sure to support your reasoning with evidence.