3. A company is considering a proposal of installing new equipment. The equipment would involve a cash outlay of *600 million and working capital of 80 million. The expected life of the project is 8 years without any salvage value. Assume that the company is allowed to charge depreciation on straight-line basis for tax purposes, and that the tax rate is 30 per cent. The estimated before-tax cash flows from year 1 through year 8 are: 210 million, 180 million, 160 million, 150 million, 120 million, 100 million, 90 million and *70 million. If the company's opportunity cost of capital is 12 per cent, calculate the equipment's net present value and internal rate of return.