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help with the following: 2. The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years.

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2. The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to a residual value of $0. It can be sold in the end of year 3 for $5,000. The cane manufacturing machine will result in sales of 2,000 canes in year 1. Sales are estimated to grow by 10% per year each year through year three. The price per cane that Sisyphean will charge its customers is $18 each and is to remain constant. The canes have a cost per unit to manufacture of $9 each. There is a $4,000 xed overhead incurred each year for this investment. Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts. It is estimated that the Sisyphean Corporation needs to hold 2% of its annual sales in cash, 4% of its annual sales in accounts receivable, 9% of its annual sales in inventory, and 6% of its annual sales in accounts payable. The initial net working capital is zero in year 0, and the net working capital can be fully recovered in year 4. The rm is in the 35% tax bracket, and has a cost of capital of 10%. Calculate the NPV and IRR for this investment opportunity

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