What's the IRR and NPV?

Synerdyne is considering an investment in 2013 of $1,800,000 in equipment to support an expansion of sales. The table below provides sales and earnings forecasts for the project in thousands of dollars. 2014 2015 2016 2017 2018 2019 2020 _300 Sales 5,882 10,393 10,687 10,988 11,298 11,616 Earnings before interest, Depreciation and taxes -408 1,026 1,083 1,113 1,145 1,177 Depreciation 300 _300 300 300 _300 Earnings before interest and taxes -708 726 783 813 845 877 Tax @ 40% 313 325 __338 Earnings before interest but after taxes (EBIAT) -425 436 470 488 5 07 526 Since the product is expected to become obsolete in about 6 years, the investment is fully depreciated at the rate of $300,000 per year. Sales are forecast to drop to $0 in 2020, so the equipment will be sold for an estimated $250,000 at the end of 2019. The gain on the sale would be taxed at a 40% rate. -283 290 _351 Net working capital at the end of each year is forecast at 12% of sales during that year. Its full recovery is expected at the end of 2019. (Net Working Capital equals Accounts Receivable plus Inventory less Accounts Payable and Accrued Expenses). 2003 0 0 Sales Net working capital (12%) of sales) 2004 5,882 706 2005 10,393 1,247 2006 10,687 1,282 2007 10,988 1,319 2008 11,298 1,356 2009 11,616 1,394 2010 0 Synerdyne uses a 14% discount rate on product expansion projects