Analyze the following project choices using NPV and IRR. You have a budget of $500,000. Premise: you are the financial manager for a pet food supply company that is currently at capacity. While sales have seen a steady increase of between 3-6% over the past several years, the marketing department has released some industry information. The executive management team is working on strategic planning for the next 3-5 years and needs input from you. WACC 7.5% Option A: R&D project to develop new dog food that caters to the clean eating trend. The new product would be launched by second quarter 2019 at a cost of $500,000. Anticipated sales 2019 2020 2021 2022 $300,000 $800,000 $880,000 $968,000 Net OCF = 80,000 160,000 176,800 193,600