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HELP PLEASE Aguilera Acoustics. Inc., (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: Production of the implants will require $1.500.000

image text in transcribedHELP PLEASE

Aguilera Acoustics. Inc., (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: Production of the implants will require $1.500.000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $1.450.000 per year, variable production costs are $230 per unit, and the units are priced at S355 each. The equipment needed to begin production has an installed cost of $24.000.000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS (MACRS Table) property. In five years, this equipment can be sold for about 20 percent of its acquisition cost. AAI is in the 35 percent marginal tax bracket and has a required return on all its projects of 18 percent. What is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Net present value $ What is the IRR? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return %

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