3) You must analyze an investment project for company A which consists in introducing a new product. This product will be sold during four years and at the end of year four, production will stop and the fixed assets of the project will be sold. The table below contains all the relevant forecasts of the project's operations. Company A has profits in other lines of business and pays a marginal tax rate of 20% on all profits. The project has a cost of capital of 7.5%. Find the NPV and IRR of the project. Period 0 1 2 3 4 FIXED ASSETS Capital investment 2,500 Resale price of fixed assets 250 Annual depreciation 625 625 625 625 WORKING CAPITAL Accounts receivable 500 550 675 0 Accounts payable 50 230 105 52 0 Inventory 425 750 625 500 0 REVENUE AND COSTS Price of the product 0.50 0.53 0.55 0.58 Units sold 7,500 7,600 7,700 7,850 Production costs 2,500 2,750 2,800 3,000