The existence of options can $--$select$-vv$ projects' expected profitability, $-$ select$-vv$ their calculated NPvs$,$ and $-$ select$-v$ their risk. accounted for in a traditional NPV analysis and a positive option walue expands the firm's opportunities. the proposed project, which is expected to last $3$ years:

The project can be operated at the company's Charleston plant, which is currently vacant. company plans to use the equipment for all $3$ years of the project. At $t=3($which is the project's last year of operation$),$ the equipment is expected to be sold for $$1,450,000$ before taxes.

The project will require an increase in net operating working capital of $$730,000$ at $t=0.$ The cost of the working capital will be fully recovered at $t=3($which is the project's last year of operation$).$

Expected high$-$protein energy smoothie sales are as follows:

Year Sales

$1$$$2,600,000$

$27,400,000$

$33,800,000$

The project's annual operating costs $($excluding depreciation$)$ are expected to be $60\%$ of sales.

The company's tax rate is $25\%.$ credits related to this project they can be used in the year they occur.$)$

The project has a WACC $=10\mathrm{.}0\%.$

What is the project's expected NPV and IRR? Round your answers to $2$ decimal places. Do not round your intermediate calculations.

Should the firm accept the project?

$$ dollars" to ascertain the answer.

millions of dollars