anna is the manager of an upcoming heavy metal band. they have asked her to help them decide whether or not they should proceed with their upcoming, 3 year long world tour. they have provided her with the following information:

they wil have to purchase stage and music equipment including lighting, monitors, amplifiers and more. the total cost of the equipment is expected to be $1.600.000. the equipment is expected to outlast the length of the tour and can be depreciated on a straight-line basis over five years.

the band expects revenue from tickets sales and merchandise to be $1,300,000 p.a

the band will have to hire a crew tp operate the equipment, as well as pay for transportation from one show to another. these costs are expected to be $300,000 p.a

the band will pay Anna 10% of revenue as their manager

at the end of the tour the band expects to sell the equipment for $800,000

the band is taxed at 30%

should they go ahead with the tour if their required rate of returns is 14% after - tax using all four criteria including:

a. NPV

b. IRR

c.Why?