The Taylor Mountain Uranium Company currently has annual revenues of $$1\mathrm{.}2$ million and annual expenses exclusive of depreciation of $$700,000.$ Depreciation amounts to $$200,000$ per year. These figures are expected to remain constant for the foreseeable future $($at least $15$ years$).$ The firm$$s marginal tax rate is $40$ percent.

A new high$-$speed processing unit costing $$1\mathrm{.}2$ million is being considered as a potential investment designed to increase the firm$$s output capacity. This new piece of equipment will have an estimated usable life of $10$ years and a $$0$ estimated salvage value. If the processing unit is bought, Taylor$$s annual revenues are expected to increase to $$1\mathrm{.}6$ million, and annual expenses exclusive of depreciation will increase to $$900,000.$ Annual depreciation will increase to $$320,000.$ Assume that no increase in net working capital will be required as a result of this project. $($Note: This problem is the same as problem $7$ in Chapter $9,$ except for the following questions.$)$

a$.$ Calculate the processing unit$$s net present value, using a $12$ percent required return.

o My textbook says NPV $=$ $$19,031$ but another Chegg expert answered $-$$$250,000$

b$.$ Should Taylor accept the project?

c$.$ How many internal rates of return does the processing unit project have? Why?

d$.$ Calculate the processing unit$$s internal rate of return.