production line would be set up in unused space in the main plant. The machinery's invoice price would be approximately $200.000, another $10.000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. The machinery has an economic life of 4 years, and Arsenault has obtained a special tax ruling that places the equipment in the MACRS 3-year class life. The machinery is expected to have a salvage value of $25.000 after 4 years of use. The new line would generate incremental sales of 1.000 unites per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. Each unit can be sold for $200 in the first year. The sales price and cost are both expected to increase by 3% per year due to inflation. Further, to handle the new line, the firm's net working capital would have to increase by an amound equal to 12% of sales revenue. The firm's tax rate is 25%, and its overall weighted average cost of capital, which is risk-adjusted cost of capital for an average project is 10%. a. Assume the plant space could be leased out to another firm for $25.000 per year. b. Assume that the new line would decrease sales of the firm's other products by $50,000 per year and the cost of goods sold for those products would have been $25,000. c. Please find the NPV, IRR