Brew Ltd$.$ introduced a new product, DV$,$ to its range last year. The machine used to mould each item is a bottleneck in the production process meaning that a maximum of $5,000$ units per annum can be manufactured.

Year $0$ Year $1$ Year $2$ Year $3$ Year $4$

$$000$ $$000$ $$000$ $$000$ $$000$

Investment $(20)$

Income $65155200(20)$

Operating Cost $(71)(127)(155)(15)$

No terminal value or machinery scrap value is expected at the end of four years, when production of DV is planned to end. For investment appraisal purposes, Brew Ltd$.$uses a nominal $($money$)$ discount rate of $10\%$per year and $20\%.$

Calculate the IRR

Calculate the discounted payback period