RDH, Inc. manufactures high quality ladies boots. The company is considering the launch of a new boot style. The company believes that it would sell 47,000, 45,000, 41,000, and 36,000 pairs per year over the next four years, respectively. The new boots would sell for $345, with variable costs of $153 per pair. Fixed production costs are $3.75 million per year and the equipment necessary for the new line costs $8.5 million. The equipment will be depreciated on a 5-year MACRS schedule. The line would require an initial investment in NWC of $2.5 million, which would be returned at the end of the project. The tax rate is 40 percent, and the required return is 9 percent. The company expects that because of changes in styles, the new design can only be sold for the next four years. In four years, the equipment can be sold for $2.2 million, although the company believes it will keep the machinery for another product line. What is the NPV and IRR of the new