Capital Budgeting and Cash Flow Example: The Alligator Nugget Company (ANC, tastes like chicken) is considering purchasing a new hatchery for their alligator eggs The new high-tech hatchery will cost approximately $6,000,000. Stubby the CEO, estimates that this purchase will result in new Sales revenue of $4,500,000 annually for the next 4 years. Operating expenses will be $3,000,000 each year The equipment will be depreciated using the 5 year MACRS class (20%,32%, 19.2%, 11.52%, 11.52%, 5.76%) e Equipment will have a salvage value of $500,000 at the end of the 4h year. Stubby normally uses a 10% interest rate to evaluate all of the investments. . The tax rate is 21%. Calculate the After-tax cash flow for years 1,2, 3, 4 Calculate the NPV of this project Calculate the IRR of this project Calculate the Payback period of this project . NINV G,00o,.coo