Can i get the answers to 8 and 9? Thank you!

4. (25 points) You are working for a company that is developing a new product. You have been asked to put together an estimate of the 5 -year cashflow from this. Below is the pertinent information. You previously you did some work on Fully Allocated Costs (FAC) and have the following information. - Cost of Raw Materials is $3.54/ unit - Cost of Labor is $10.32 /unit - Overhead costs which has two parts: - $500,000 initial cost for machinery that can be depreciated using a 7 year MACRS recovery period (the machinery can be sold for $35,000 in year 5 ) - $350,000 per year for operating costs - The estimated volume is 18,000 units per year - Sales will grow at 5%/ year - The sales price will be S40/ unit - The tax rate is 28\% Payback 5. (5 points) What is the Payback for the investment in problem 4 ? Net Present Value 6. (5 points) What is Net Present Value (NPV) at 8% for the investment in problem 4 ? Is this a good investment? Internal Rate of Return 7. (5 points) What is the Internal Rate of Return (IRR) for the investment in problem 4 ? Is this a good investment at a MARR of 8% ? Sensitivity Analysis Sensitivity Analysis 8. (10 points) Since the investment in problem 4 is quite uncertain, answer the following "what if" questions? a. If the initial investment is S700,000 would this still be a good investment at a 8% MARR? b. If the sales price is S35 /unit would this still be a good investment at a 8% MARR? Incremental Internal Rate of Return 9. (15 points) Use Incremental IRR to determine which of the following mutually exclusive alternatives is the best at a 7% MARR