Desai Industries is analyzing an average-risk project, and the following data have been developed.
1. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation.
2. The project should last for 3 years, and the machine will be depreciated on a straight-line basis (with a pre-tax salvage value of $1200).
3. No change in net operating working capital would be required. This is just one of many projects for the firm, so any losses on this project can be used to offset gains on other firm projects.

WACC	10.00%
Net investment cost (depreciable basis)	$200,000
Units sold	50,000
Average price per unit, Year 1	$25.00
Fixed costs (constant)	$50,000
Variable oper. cost/unit, Year 1	$20.20
Annual depreciation rate	33.33%
Expected inflation rate per year	5.00%
Tax rate	25.00%
pre-tax salvage value	$ 1,200.00

use formula to calculate the total FCF below (2 pts for year 0-2, and 4 for year 3)
	Year 0	Year 1	Year 2	Year 3
units		50000	50000	50000
price
variable costs
fixed costs
SALES
COGS
Depreciation
EBIT
new capital spending
OCF	0
change in NWC	0	0	0	0
after-tax salvage value	0	0	0
total FCF
Calculate the following (2 pts for IRR and MIRR, and payback):
payback=
NPV=
IRR=
MIRR=