Hearld Manufacturing is considering investing in a robotics manufacturing line. Installation of the line will cost an estimated $$3$ million. This amount must be paid immediately even though construction will take three years to complete $($years $0,1,$ and $2).$ Year $3$ will be spent testing the production line and, hence, will not yield any positive cash flows. If the operation is very successful, the company expects after$-$tax cash savings of $$2$ million per year in each of years $4$ through $7.$ After reviewing the use of these systems with managements of other companies, Hearld's controller concluded that the operation will most probably result in annual savings of $$1,400,000$ per year for each of years $4$ through $7.$ Further, it is entirely possible that the savings could be as low as $$600,000$ per year for each of years $4$ through $7.$

Compute the IRR and NPV under the three scenarios $($use $16$ percent for the NPV calculation$).$

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