DDK Industries is considering a new capital budgeting project that will last for three years. Initial investment outlay for project equipment is expected to be $110,000. The equipment will be straight-line depreciated down to zero book value over the three year period. The expected market value of project assets is forecasted to be $50,000 when the project is liquidated at the end of the third year. The project will require $7,000 Net Working Capital investments in years 1 and 2. The project does not require any investment in fixed assets during years 1 and 3, but a $10,000 investment is projected in year 2. DDKs cost of capital is 12% and the project does not have a distinct risk profile. DDKs tax rate is 35%. Based on extensive research, analysts have prepared the following incremental revenues and tax costs. The NPV and IRR of the project is---------

Year	0	1	2	3
Sales (Revenues)		100,000	100,000	100,000
- Cost of Goods Sold (50% of Sales)		50,000	50,000	50,000
Depreciation		36,667	36.667	36,667
EBIT		13,333	13,333	13,333
Capital Expenditures	-110,000	0	-10,000	0