7) Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering. The project has a cost of $275,000 and is expected to provide after-tax annual cash flows of $73,306 for each of the next eight years. The firm's management is uncomfortable with the IRR reinvestment assumption and prefers the modified IRR approach. You have calculated a cost of capital for the firm of 12 percent.

a) Draw the time line for the project's expected net cash flows. What is the project's net present value?

B)

What is the project's modified internal rate of return.

financial calculator and Excel allowed.

Write out any formula you use.

Use Excel as a calculator.

You may use the calculators and Excels financial functions; show the function name, inputs and output