D H 15 14 1. (20 points) 15 CLEAN is considering investing in new manufacturing capabilities for one of its products and estimates it will produce annual cash flows of 50.6 million in 2023. 15 growing 35% in 2024, 45% in 2025, and 30% in 2026 and 5% in 2027. Assume the product becomes obsolete after 2027. The company's cost of capital is 16% 17 The system will cost $20 million today 13 19 a. What is the Net Present Value of the new manufacturing capabilities? 20 7 b. What is the IRR of the new manufacturing capabilities? IRR 9 30 SI 32 4 17 3 d. Do you recommend CLEAN invest in new manufacturing capabilities? Why or why not? 9 Yes I recommend as the NPV is positive. Hence invest 20 11