Cost Reduction Proposal: IRR, NPV, and Payback Period J8 Chemical currently discharges liquid waste Into Calgary's municipal sewer system. However, the Calgary municipal government has Informed JB that a surcharge of dollar 4 per thousand cubic liters will soon be imposed for the discharge of this waste. This has prompted management to evaluate the desirability of treating its own liquid waste. A proposed system consists of three elements. The first Is a retention basin, which would permit unusual discharges to be held and treated before entering the downstream system. The second is a continuous self-cleaning rotary filter required where solids are removed. The third is an automated neutralization process required where materials are added to control the alkalinity acidity range. The system Is designed to process 500.000 liters a day. However, management anticipates that only about 200,000 liters of liquid waste would be processed in a normal workday. The company operates 300 days per year. The Initial investment m the system would be dollar360,000, and annual operating costs are predicted to be dollar150.000. The system has a predicted useful life of twelve years and a salvage value of dollar40,000. Determine the project's net present value at a discount rate of 26 percent. (Round to the nearest whole number. Use a negative sign with your answer if appropriate.) dollar Determine the project's approximate internal rate of return. (Round to the nearest whole percentage.) Determine the project's payback period. years