Steve is considering investing in toaster ovens for each of its 120 stores located in southern U.S. The high capacity conveyer toaster ovens will require an initial investment of $15,000 per store plus $1,500 in installation costs for a total investment of $1,860,000. The new capital (including the costs for installation) will be depreciated over five years using straight line depreciation toward a zero salvage value. In addition, Steve will also incur additonal maintanence expenses totaling $120,000 per yr to maintain the ovens. At present, firm revenues for the 120 stores total $9,000,000 and the company estimates that adding the toaster feature will increase revenues by 10%.

A. If steve faces a 30% tax rate what expected project FCF's for each of the next five years will result from the investment in toaster ovens?

B. If steve uses a 9% discount rate to analyze its investments in its stores, what is the projects NPV? IRR?