American Biodyne (AB) is considering expanding into a new line of business. The expansion will require an investment of $600,000 in new equipment. This equipment which will cost another $100,000 to install, will be depreciated on a straight-line basis over an 8-year period to an estimated salvage value of zero. If the expansion project is accepted, working capital will increase by $200,000 immediately. Revenues for the first 3 years are forecasted at $500,000 per year and at $700,000 in years 4-8. Operating costs exclusive of depreciation are expected to be $250,000 per year for 3 years and increase to $360,000 per year for the following 5 years. AB has a marginal tax rate of 40% and its required rate of return for the project under consideration is 16%. If AB assumes that the new equipment will have an actual market value of $50,000 at the end of the 8th year, should the expansion be undertaken? Compute the NPV. Compute the IRR. Show your work.