A company is considering a project that requires an initial investment of $607,500 and has a useful life of 9 years. Expected cash receipts from the project will be $185,000 each year. The salvage value of the assets used in the project will be $70,000. The companys tax rate is 30%. For tax purposes, the entire initial investment (without any reduction for salvage value) will be depreciated over 9 years. The company uses a discount rate of 16%.

1.) Provide the variables you entered into Excel and your final calculation of net present value after-tax. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response. Round answers to the nearest dollar and use a minus sign ( - ) for negative numbers.)

Excel input:

Rate	________ %

Nper

________

PMT	$ ________

PV	$ ________

FV	$ ________

Net present value

$ ________

2.) Compute the internal rate of return after-tax. Provide the variables you entered into Excel for the calculation. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response. Round answers to the nearest dollar / whole number and use a minus sign (-) for negative numbers.)

Excel / calculator input:

Rate

_______ %

Nper

_______

PMT

$ _______

PV

$ _______

FV

$ _______

Internal Rate of Return (IRR)

_______%