Suppose you can purchase a machine for $2,000,000. The machine will last for 4 years it can be sold at that time for $583,100. The machine will be used to produce 200,000 units per year. The price per unit will be $20. The variable cost will be $9. The fixed costs associated with the project are $250,000 per year. The company needs to invest $150,000 in operating net working capital at time zero. Thereafter operating net working capital will be 10% of sales. The tax rate is 40%, the CCA rate is 30% and the required rate of return is 12%.

What is the NPV?

What is the IRR?

What is the Profitability Index?

What is the Payback Period?

What is the Discounted Payback Period?

What is the MIRR? Assume a reinvestment rate of 12%.