To further increase the efficiency of manufacturing cars, Tesla is installing what they call a Giga Press. This machine is able to produce large parts of the car structure in one go and will make the production process fast and high quality. The machine costs $800 million and will be depreciated over its useful 10-year life down to zero. There are only variable cost benefits from using this machine. Specifically, the company is saving $500 per car in variable costs. Annual production output is 500,000 cars for the next 10 years Assuming a 25% tax rate, a discount rate of 10%, and ignoring any working capital and salvage value considerations. Which of the following statements is correct?

1. The variable cost benefits of $500 per car are not sufficient to compensate for an $800 million purchase price of the machine.
2. It is a very good financial decision to purchase and utilize the Giga Press. Its NPV is more than $470 million.
3. The NPV of the project is $352 million, with an IRR of 19%