Project Aspire: This project will require the acquisition of plant and machinery costing $2,250,000 which is payable immediately. This machinery will have a scrap value of $375,000 at the end of the 5 years. There is also $140,000 working capital to be used immediately. This amount has been taken from the companys retained profits and will be repaid at the end of the project. Cash inflows are expected to be $650,000 in year 1 rising at a rate of 7.5% per annum for years 2 to 5 inclusive. Variable costs in year 1 are expected to be $27,000 per annum and are expected to rise at 6.75% per annum. Capital allowances are available on the plant and machinery as follows: $ Year 1 Year 2 Year 3 Year 4 Year 5 600,000 390,000 345,000 300,000 240,000 This project will expand the current product range and will appeal to existing and potential customers. Corporation tax is paid at a rate of 20% and tax is payable one year in arrears. The weighted average cost of capital is 10% and, unless otherwise stated, cash flows occur at the end of the year to which they relate. Prepare a report to the Directors of AYR Co. which includes the following. 1. A calculation of the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period for project Aspire . Detailed calculations should be included as an appendix to the report. All cash flows should be rounded to the nearest $.