1.Notational Inc. is considering installing a new server. The new cloudlike machine costs $75,000 and isexpected to have a useful economic life of 10 years, after which it will have a book value of $0.The company's tax rate is 25%. In addition to the equipment costs, management expects installation costs of $10,000 and an initial outlay for net working capital of $12,500.The new server is expected to generate an additional $15,000 per year in earnings on an after- tax basis over its useful life, but an additional $4,000 per year is required in networkingcapital. All net working capital will be recovered at the end of 10 years. Assume that Notational has a cost of capital of 10%. Calculate the NPV and IRR for this project.