Question 5 30 pts A dairy farmer has hired you to analyze the profitability of investing in robotic milkers The dairy farmer provided you with the following data. The cost of the robots and upgrading the facility would be $703,750 Repair costs would be $10,000 per year. The robots would save 1,820 hours of labor per year. Assume a labor rate of $15.00/he The robots are also projected to help increase milk production by 4,900 addition cwt per year. Assume a price $15 per cwt for the milk. The robots and facility can be depreciated over 7 years. The terminal value after year seven is projected to be $225.000. Assume that the inflation rate will be 2.00% and that operating revenues, operating expenses, and terminal value will increase at the rate of inflation 0.., operating receipts, operating expenses and terminal value are stated as real dollars, thus, you must convert them to nominal The farmer has arranged financing with Farm Credit Services. They will lend the farmer 80% of the cost of the robots. The loan will be fully amortized at a 4.65% interest rate over 8 years (annual payments). The farmer anticipates that his marginal tax rate over the next five years will be 21%. The farmer requires at least a 5.5% pre-tax, risk-free return on capital and a 2.25% risk premium on projects of comparable investments. The life of the investment will be 7 years What is the NPV? Question 6 10 pts What is the IRR? Decimall form please