Calculate NPV & IRR using the following information:

. Purchase Price: Estimated purchase price for the new equipment is $150 million.

. Companys Depreciation Policy: Depreciation using Straight-line method, the economic life is 5 years.

- Equipment expected to have zero salvage value at the end of year 5. At that time the equipment will be obsolete and sold for scrap.

. Cash Inflows: Project inflows are expected to be $65 million per year, beginning one year after installation of the new equipment is complete.

. Cash Outflows: The new equipment will have extra cash outflows of $10 million per year beginning one year from today.

. Tax Rate: The companys estimated tax rate is 30%.

Find the net present value (NPV) and (IRR) using the information in the "Project Scope" tab.
Use the cells below to show your work.
			Calculate NPV & IRR			Calculate Cash Flow
	Rate of Return					Inflow
	Yr 0					Outflow
	Yr 1					Depreciation
	Yr 2
	Yr 3					Tax (1-.30)
	Yr 4					Depreciation
	Yr 5					Cash Flow
	NPV
	IRR