Please show all work.

Mahya Fashions Inc. can invest $5 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 5 million jars of make-up a year. Fixed costs are $2 million a year, and variable costs are $1 per jar. The product will be priced a $2 per jar. Plant requires $50,000 in additional net working capital. The plant will be depreciated straight-line over 5 years to a salvage value of $50,000. Using the WACC you have found above and the tax rate of 20 percent, please answer the following:

a. What is project NPV and IRR under these base-case assumptions? Accept or Reject?

b. What is NPV if variable costs turn out to be $1.20 per jar?

c. What is NPV if fixed costs turn out to be $1.5 million per year?

d. At what price per jar would the project NPV equal zero?

WACC is 10.5%