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J. Morgan of SparkPlug Inc. has been approached to take over a production facility from B.R. Machine Company. The a question will cost $1, 810.000.

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J. Morgan of SparkPlug Inc. has been approached to take over a production facility from B.R. Machine Company. The a question will cost $1, 810.000. and the after-tax net cash inflow will be $333.000 per year for 12 years. SparkPlug currently uses 12% for its after-tax cost of capital Tom Morgan production managed is very much in favor of the investment. He argues that the total after-tax net cash inflow is more than the cost of the investment, even if the demand for the product is somewhat uncertain. "The project will pay for itself even if the demand is only half the projected level "Cindy Morgan (corporate controller) believes that the cost of capital should be 15% because of the declining demand for SparkPlug products (Use Table 1 and Table 2.) Assume the projects after-tax cost of capital is 12%. Calculate the NPV of this project. Should Morgan accept the project? (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.) Calculate the NPV of this project, if Cindy Morgan is correct and uses 15%. Should Morgan accept the project? (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.) Use the built-in function in Excel to estimate the project's IRR. (Round your answer to 2 decimal places.) Do a sensitivity analysis by using GOAL SEEK to determine, given estimated cash inflows, the original investment outlay that would result in an iRR of 15% (Round your answer to the nearest whole dollar amount.)

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