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IU 10 points Aylmer-in-You (AIY) Inc projects unit sales for a new opera tenor emulation implant as follows Year Unit Sales 1 100,000 2 114,00

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IU 10 points Aylmer-in-You (AIY) Inc projects unit sales for a new opera tenor emulation implant as follows Year Unit Sales 1 100,000 2 114,00 124,000 144,00 89,00 Stoped ook Print Detences Production of the implants will require $745,000 in net working capital to start and additional networking capital investments each year equal to 10% of the projected sales increase for the following year. (Because sales are expected to fall in Year 5, there is no NWC cash flow occurring for Year 4.) Total fixed costs are $176,000 per year, variable production costs are 5312 per unit, and the units are priced at $360 each. The equipment needed to begin production has an installed cost of $9.0 million Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus falls into Class B for tax purposes (20% In five years, this equipment can be sold for about 15% of its acquisition cost. AlY is in the 40% marginal tax bracker and has a required return on all its projects of 17% Based on these preliminary project estimates, what is the NPV of the project? What is the IRR (Enter your answer in dottars, not in millions of dollars, i.e. 1.234.567. Do not round your intermediate calculations. Round the final answers to 2 decimal places. Omit S sign in your response.) NPV Next

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