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#6 ALIANA'S CAF EXPANSION (1PT) Aliana's Caf is expanding and expects this expansion to cause an increase in after-tax operating cash flows of $42,000

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#6 ALIANA'S CAF EXPANSION (1PT) Aliana's Caf is expanding and expects this expansion to cause an increase in after-tax operating cash flows of $42,000 per year for 7 years. This expansion requires $78,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires an investment of $6,000 in net working capital at the start of the project, which will be recovered at the end of the project. What is the NPV of this expansion project if the required return is 14 %? What is the project IRR?

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