Use the following information to answer questions 16-20. Be sure to show your work as partial will be given can figure out where you start to go wrong.

Layla's Distribution Co. is considering a project which requires the purchase of $1.6 million in new equipment. The equipment will be depreciated straight-line to a zero book value over the 5- year life of the project. Layla's expects to sell the equipment al the end of the project for $ 180,000. Annual sales from this project are estimated at $1.3 million, and you will incur $ 100,000 in fixed costs and variable costs equal to 10% of sales. Networking capital equal to 30 percent of sales will be required to support the project and built up in the beginning. All of the networking capital will be recouped al the end of the project. The firm desires a minimal 12 percent rate of return on this project. The tax rate is 30 percent.

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20. what is the IPR of this project?