Tring to understand how to find the first component of the problem which involves using the Project Parameters and Scenario values to find the NPV and IRR for scenarios 1,2, and 3.

Project Parameters:

Suppose, we can sell 50,000 cans of shark attractant per year at a price of $4.00 per can. It costs us about $2.50 per can to make the attractant. A new product such as this one typically has only a three-year life. We require a 20% return on new products.

Fixed costs for the project will run $12,000 per year.

We will need to invest a total of $90,000 in manufacturing equipment. For simplicity, we will assume that this $90,000 will be fully depreciated over the three year life of the project.

The project will require an initial $20,000 investment in net working capital.

The tax rate is 34%.

Scenario:

Number of cans	50000
Price per can	4
Cost per can	2.5
Fixed Cost	12000
Tax rate	34%
Discount rate	20%
Initial Investment	90000
	0	1	2	3
Revenue		$ 200,000
COGS		$ 125,000
Gross Profit		$ 75,000
Fixed Cost		$ 12,000
EBITDA		$ 63,000
Depreciation
EBIT
Tax
Net Income
NCS	$ (90,000)
NWC	$ (20,000)			$ 20,000
CFFA
NPV			Hint: It should be $10,648 for the Base Case.
IRR