Company C is planning to invest in new technology that costs $5,500,000. The technology has a useful life of 10 years and will have no salvage value. It is expected to generate additional annual revenues of $1,500,000 and will incur annual operating costs of $400,000. The company uses straight-line depreciation. The cost of capital is 10%, and the tax rate is 25%.

Requirements:

1. Calculate the Annual Depreciation.
2. Compute the Annual After-tax Cash Flows.
3. Determine the NPV.
4. Find the IRR.
5. Analyze the investment’s feasibility.