Please explain the NPV and the IRR

12. You want to invest $85,000 in a major new product rollout. You believe it will generate EBIT of 71,300 for the next 5 years. The investment will be straight-line depreciated to $0 book value at the end of the 5 years. This rollout will also require an investment in NWC of $11,000 in year, which will be returned at the end of the project. The tax rate is 21% and the required return is 14%. What is the NPV, IRR of the project? OCF = EBIT + Depreciation - Taxes OCF = $71,300 + $17,000 - ($71,300 x 0.21) OCF = $73,327 (each year of project) ANWC is is given; $11,000 (invested at start), $11,000 (returned at end) NCS is given; $85,000 (invested once at start), fully depreciated to $0 NPV = $161,450.58. IRR = 71.83