I need to determine the profitability of the project by calculating the NPV and IRR.

I need to considering coffee packaging as a diversification to its product line. Here's information regarding the coffee packaging project:

• Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year
• Project and equipment life: 5 years
• Sales: $27 million per year for five years
• Assume gross margin of 50% (exclusive of depreciation)
• Depreciation: Straight-line for tax purposes
• Selling, general, and administrative expenses: 10% of sales
• Tax rate: 35%

Assume a WACC of 10%.

FIN 615
NPV and IRR calculations
Cost of Capital	10.00%
Time/yr	0	1	2	3	4	5
Cash flow Input here
Discounted CF	0	0	0	0	0	0
NPV	0	=cf1/((1+n)^1)	=cf2/((1+n)^2)	=cf3/((1+n)^3)	=cf4/((1+n)^4)	=cf5/((1+n)^5)
PV factor		0.909090909	0.826446281	0.751314801	0.683013455	0.620921323
IRR	#NUM!