Emperor's Clothes Fashions can invest $8 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 6 million jars of makeup a year. Fixed costs are $2 million a year, and variable costs are $1 per jar. The product will be priced at $2 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is 10%, and the tax rate is 40% a. What is the project NPV and IRR under these base-case assumptions? b. What is NPV and IRR if variable costs turn out to be $1.20 per jar? c. What is NPV and IRR if fixed costs turn out to be $2.5 million per year