• The tax rate is 28% and is payable in the year profits are made.
• The company is financed by 75% equity and 25% debt, with market values of R75-million and R25-million respectively. The company has an equity beta of 1.2. The rate on South African Treasury bills is 5% and considered to have no risk. The market risk premium is 7.5%. The companys after-tax cost of debt is 6%.
• Profits are similar to cash flows for the purposes of this project evaluation; and
• All receipts and payments arise at the end of the year to which they relate except for the projects initial outlay of R30-million, which is paid at the beginning of the project (ie, immediately).

Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Sales	R36,750.00	R54,023.00	R61,586.00	R69,770.00	R70,451.00
Less: Material	R5,885.00	R9,075.00	R11,979.00	R14,714.00	R14,495.00
Less: Labour	R11,770.00	R18,150.00	R23,958.00	R30,746.00	R28,989.00
Less: Variable OH	R525,00	R662,00	R752000	851000	957000
Less: Fixed OH	R5,250.00	5513000	5788000	6078000	6381000
Less: Operating Costs	R3,120.00	3353000	3600000	3978000	4015000
Profit Before Tax (PBT)	R10,200.00	R17,270.00	R15,509.00	R13,403.00	R15,614.00
Less: Tax @ 28%	R2,856.00	R4,835.60	R4,342.52	R3,752.84	R4,371.92
Profit After Tax (PAT)	R7,344.00	R12,434.40	R11,166.48	R9,650.16	R11,242.08

Determine IRR for discounting.