1) Find below the forecasts on sales and costs of a particular investment project you are considering. The new project requires some initial investments in the amount of 25,000), which can then be sold at the end of six years for 1,250. At that time the project will be canceled and working capital will be liquidated. Depreciation will be computed linearly, assuming a residual value of 2,500 (so 3,750 per year). All profits are taxed at 25% and the company has profits in other lines of activity which can be compensated with the project's losses. The project's cost of capital is 14.75%. Compute the NPV and IRR of the project. Period 1 2 3 4 5 6 0 25,000 Capital investment Resale value 1,250 Working capital 0 1,375 3,223 8,153 12,225 8,958 5,005 Sales 0 1,308 32,218 81,525 122,253 89,585 49,293 COGS 0 2,093 19,323 48,880 73,363 53,730 29,575 Other costs 10,000 5,500 3,025 3,328 3,660 4,028 4,430