Calculate NPV and IRR. The salvage value is 0.

Renovation of current event centre	Information as above
Initial investment costs for 2nd centre	$445,000
Additional technology equipment	$100,000
Outdoor area expansion costs	$150,000
Contractor costs (paid in Year 0)	$120,000
Additional revenues:
Year 1	$300,000
Year 2	$380,000
Year 3	$450,000
Year 4 10	2% increase in revenues per year
Additional expenses:
Year 1	$165,000
Year 2	$200,000
Year 3	$220,000
Year 4 10	2% increase in expenses per year
Estimated useful life	10 years
CCA rate for centres and outdoor area	30 percent
CCA rate for technology equipment	50 percent
Corporate tax rate	15 percent
Weighted average cost of capital	8 percent