The company INSOL1, due to the decrease in sales in the last period, has decided to acquire new welding machinery that decreases production time, as well as it also lowers costs, which would position itself competitively in the market.

The new machinery entails an investment of USD 90,000 at moment 0. It is It will be amortized on a straight-line basis over 5 years and will be 100% financed by the company.

The company estimates that it will produce sales of an additional USD 20,000 per year in the first year (Fruit of the drop in price), and USD 22,000 from the second year to the fifth year. Additionally, it will decrease USD 5,000 in cost each of the 5 years. It is estimated that at 5 years, this machinery will be obsolete, with a market cost of 0.

Faced with this investment possibility, calculate the NPV and the IRR to evaluate if it is a good decision. Consider that the update rate that we will take is 15% (cost of opportunity) and that the income tax is 35%.

Can you please use an excel table to show the work with formulas?