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PolarTech Inc. is considering the production of a new widget. The production equipment, costing $ 1 5 million, will be depreciated over a six -

PolarTech Inc. is considering the production of a new widget. The production equipment, costing $15 million, will be depreciated over a six-year period. Upon full depreciation, the equipment's resale value is estimated at $3 million. The widget's retail price is $300, with an anticipated annual sales volume of 150,000 units. Fixed costs are projected at $800,000 annually, and variable costs amount to $15 per widget. Initial project startup requires a net working capital investment of $1,500,000. No additional working capital is required during the project. The applicable tax rate is 25%. Conducting a scenario analysis with cost of capital rates set at 6%,10%, and 15%, calculate IRR and NPV for each scenario.

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