Can you please explain how my professors got the answers to questions 7 and 8? Please show steps/equations used so I can learn how to do it.

For question 7, you need previous answers to solve it, so here they are...

2c: Annual Depreciation Expense: $300,000

3b: ATSV of equipment: $1,325,000

5: EBIT: $220,000 in year one, $419,200 in year two, and $644,725.60 in year three

6: Increases in NWC: $40,000 in year one, -$80,000 in year two, and -$110,000 in year three.

A 3-year project requires the acquisition of equipment that cost $2 million (including shipping and installation) and a $500,000 structure to be built on a plot of land already owned by the parent company. The plot was purchased some time ago by the company for $60,000 for use in another project that never took off and the plot has been lying idle since then. The current appraised value of the plot is $120,000. If the project takes off, it will require an initial investment of $150,000 in NWC. The project manager has received a guarantee from the parent company that, in three years, it will repurchase the structure (including the plot of land) at $620,000 (with no tax implication since it is an internal transaction). Assume no depreciation expense for the structure. Q1: Calculate the initial investment needed for the project: Ans. \$2.770.000 7. Given the answers to questions 2c,3b,5, and 6 , and assuming no further capital expenditures, calculate the annual FCF for years one, two, and three (including all terminal values for year 3 ). Ans: $425,000 in year one, $694,400 in year two, and $2,838,544.20 in year three. 8. Given the answers to questions 1 and 7 , and assuming that the required rate of return on the project is 14%, calculate the NPV, IRR, and MIRR of the project