Calculate the NPV of the project:

Step 1: Calculate annual cash flows. Step 2: Calculate tax effects. Step 3: Discount cash flows to present value.

Step 1: Calculate annual cash flows:

Revenue: Year 1: 70,000 * $425 = $29,750,000 Year 2: 80,000 * $425 = $34,000,000 Year 3: 120,000 * $425 = $51,000,000 Year 4: 100,000 * $425 = $42,500,000 Year 5: 90,000 * $425 = $38,250,000

Total Costs:

• Fixed Costs: $3,250,000 per year
• Variable Costs: $280 per unit * Unit Sales