Sales revenues, in Year 1 Operating costs (excl. deprec.), in Year Tax rate $25,000 35% Problem #2: Frank's Nursery & Crafts is considering upgrading its greenhouse. Its data are shown below. The equipment would be depreciated using straight line depreciation over the project's 4-year life, would have a salvage value of $15,000, and would require some additional working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected grow at 4% and 2%, respectively, over the project's life. what is the project's NPV? IRR? MIRR? If IRR or MIRR or not solvable, do not be concerned. Would you accept this project? Explain. WACC Net investment in the greenhouse Modification cost Required new working capital (inventory Depreciation rate Sales revenues, Year 1 Operating costs (excl. deprn.), Year 1 Tax rate 9.0% $89,000 $12,000 $18,000 Straight-line $128,000 $25,000 40.0%