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Innovation BrewWorks is contemplating the purchase of a new $ 6 2 5 , 0 0 0 brewing system. The system will be depreciated straight

Innovation BrewWorks is contemplating the purchase of a new $625,000 brewing system. The system will be depreciated straight-line to zero over its seven-year life. It will be worth $100,000 at the end of that time. They will save $165,000 before taxes per year in overall brewing costs, and they will be able to reduce working capital by $25,000(this is a one-time reduction). If the tax rate is 21 percent, and the Required Rate of Return is 12 percent, What is the NPV? What is the IRR?

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