Aguilera Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:

Production of the implants will require $1,560,000 in net working capital to start and additional net working capital investments each year equal to 20 percent of the projected sales increase for the following year. Total fixed costs are $1,460,000 per year, variable production costs are $245 per unit, and the units are priced at $360 each. The equipment needed to begin production has an installed cost of $20,600,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. In five years, this equipment can be sold for about 25 percent of its acquisition cost. AAI is in the 30 percent marginal tax bracket and has a required return on all its projects of 19 percent. Refer to Table 10.7.

Aguilera Acoustics, Inc. (AAl), projects unit sales for a new seven-octave voice emulation implant as follows ear 2 4 Unit Sales 77,000 90,000 104,000 99,000 80,000 Production of the implants will require $1,560,000 in net working capital to start and additional net working capital investments each year equal to 20 percent Total fixed costs are $1,460,000 per year, variable production costs are $245 per unit, and the units are priced at $360 each. The equipment needed to begin production has an installed cost of $20,600,000 Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. In five years, this equipment can be sold for about 25 percent of its acquisition cost. AAl is in the 30 percent marginal tax bracket and has a required return on all its projects of 19 percent. Refer to Table 10.7 of the projected sales increase for the following year What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV What is the IRR? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16) IRR