please solve showing all the steps.

Problem 9-29 Project Evaluation [LO 2] Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year 1 2 3 4 5 Unit Sales 71,500 87,800 104,300 89.200 75,300 Production of the implants will require $1.5 million in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $2.15 million per year, variable production costs are $230 per unit, and the units are priced at $375 each. The equipment needed to begin production has an installed cost of $20.5 million Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS MACRS Table) property. In five years, this equipment can be sold for about 20 percent of its acquisition cost. AAl has a 21 percent tax rate and a required return on all its projects of 15 percent. a. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year 1 2 3 Unit Sales 71,500 87,800 104,300 89,200 75,300 Production of the implants will require $1.5 million in net working capital to start and additional networking capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $2.15 million per year, variable production costs are $230 per unit, and the units are priced at $375 each. The equipment needed to begin production has an installed cost of $20.5 million. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS (MACRS Table property. In five years, this equipment can be sold for about 20 percent of its acquisition cost. AAl has a 21 percent tax rate and a required return on all its projects of 15 percent. a. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Net present value b. Internal rate of return % Property Class Year 3-Year 5-Year 7-Year 33.33% 44.45 14.81 7.41 0001AWN 20.00% 32.00 19.20 11.52 11.52 5.76 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46