Revenues generated by a new fad product are forecast as follows:

Year: Revenues:

1 $54,000

2 $30,000

3 $20,000

4 $10,000

Thereafter 0

Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues the following year. The product requires an immediate investment of $50,000 in plant and equipment. The initial investment in the product is $55,400.

If the plant and equpment are depreciated over 4 years to a salvage value of zero using straight line depreciation, and the firm's tax reate is 30%, what are the projected cash flows in each year? (Assume the plant and equipment are worthless at the end of 4 years.

Cash Flow Year 1: ??

Cash Flow Year 2: ??

Cash Flow Year 3: ??

Cahs Flow Year 4: ??

If the Opportunity cost of capital is 12%, what is the projects NPV? (Do not round intermediate calculations. Round your answer to 2 decimal places)

NPV: ???

What is project IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places)

IRR % is: ???