Stark Industries is looking at investing in a new project that has an estimated life of 5 years. Start up costs will be $25,000. Stark Industries will also be investing $100,000 in new equipment. In the first year of operations, Stark anticipates sales revenues of $60,000. These revenues are expected to grow by 5% each year until year 4. The revenues are expected to decline by 5% in the 5^th year. First year operating costs will be $10,000, and in subsequent years are expected to grow in proportion to sale revenues. The applicable tax rate here is 34%. At the end of the projects life, there will be no salvage. Your cost of capital is 12%, and the CCA rate is 25%.

Required:

1. Calculate the payback period
2. Calculate the discounted payback period
3. Calculate the Internal Rate of Return
4. Calculate the NPV
5. Calculate the NPV if the salvage is $10,000 at the end of the projects life

Show all calculations to support your answer.