Consider the following project by Goodheart Inc. The company is considering a five-year project to manufacture an advanced needle to reduce the time of hair transplant operations. This project requires an initial investment of $8 million with a CCA of 20% over the project's life. An initial investment in net working capital of $2.5 million is required. This cost is fully recoverable whenever the project ends. Goodheart believes it can generate $7 million in pre-tax revenues with $3 million in total pre-tax operating costs. The tax rate is 40%, and the discount rate is 12%. The company can sell the equipment at the following prices: Year 1 2 3 4 5 Market Value (Millions) $7 6.5 5.75 4 a) b) Assuming Goodheart operates this project for five years, what are the NPV and the IRR? If abandoning the project after one year, two years, three years, or four years is an option, what is the NPV of this project? Consider the following project by Goodheart Inc. The company is considering a five-year project to manufacture an advanced needle to reduce the time of hair transplant operations. This project requires an initial investment of $8 million with a CCA of 20% over the project's life. An initial investment in net working capital of $2.5 million is required. This cost is fully recoverable whenever the project ends. Goodheart believes it can generate $7 million in pre-tax revenues with $3 million in total pre-tax operating costs. The tax rate is 40%, and the discount rate is 12%. The company can sell the equipment at the following prices: Year 1 2 3 4 5 Market Value (Millions) $7 6.5 5.75 4 a) b) Assuming Goodheart operates this project for five years, what are the NPV and the IRR? If abandoning the project after one year, two years, three years, or four years is an option, what is the NPV of this project