Piggly Wiggly is considering a new bacon fabricating system with an installation cost of $600,000. This cost will be depreciated straight line to zero over the project's four year life and at the end of the project the equipment will be sold for $50,000. The system will reduce required net working capital by $30,000 over its lifetime. The system will save the firm $185,000 per year in pre-tax operating costs. The tax rate is 30 percent. The discount rate is 7%. What is the NPV of the project? What is the IRR of the project? What is the payback period? Should the firm undertake the project? Explain your work - merely giving answers will not get a majority of the credit.