Page 3 of 6 Problem 3 A company is considering investing in a project to produce new product. It will have to invest $300,000 for land, $500,000.00 for building. $200,000.00 for equipment and $100,000 for working capital at the beginning of year 1. It is expected that the project will result in sales of $800,000.00 per year for 20 years, starting at the end of year 1. The annual expenses for labor, materials, and all other items are estimated to total S600,000.00 starting at the end of year 1. If at the end of 20 years, the total salvage value of the land, the building, and the equipment is zero (i.e, $0.00), Draw the cash flow of this project. b) a) What is the IRR of the Project? If at the end of 20 years, the land can be sold for $400,000.00, the building for $400,000.00, and the equipment for $50,000.00 and the prevailing interest rates are 25%, c) What is the IRR of the Project? d) What is the present value of the project? Is the project a good investment? e) What is the Annual Worth, AW, of this project? ) What is the Future Worth, FW, of this project at the end of 20 year period