King's Inc, is considering a new project: whether to purchase a new sausage system The system will save the firm $500,000 per year in pretax operating costs The new system costs $2,100,000 and will be used for 5 years This cost will be depreciated straight-line to $300,000 in 6 years At the end of the project, the sausage system can be scrapped for $400,000 The system requires an initial investment in net working capital of $200,000 The required rate of return is 6% and tax rate is 30% Target payback period is 4.25 years Use NPV, IRR and payback period to make the capital budget decision for this project. (Show your work to get full points; your work should include step 2-4 of the capital budgeting decisions; It is required to use the NPV and IRR function of financial calculator to find NPV and IRR; No Excel work or approximation formula will be accepted)