Lazy River is considering expanding its product line.Equipment for the new product line is expected to cost $5,6500,000 and have a 7-year useful life.Lazy River estimates the equipment's terminal value will be $225,000 at the end of seven years. Lazy River's expected net cash inflows from the new product are provided at left. Lazy River has a minimum desired after-tax rate of return (hurdle rate) for this type of investment of 10.65%.The asset is 7 Year MACRS property, and Lazy River's effective income tax rate is 30%.The MACRS Table is provided on the last worksheet of this file.

a.Compute the after-tax NPV for this investment.Show your work.

b. Compute the after-tax IRR for this investment.Show your work.

c. Compute the after-tax Profitability Index for this project.Show your work.