Whip City Construction Corp (WCCC) is considering building a concrete plant on land that they already own. The current market value of the land is $1 million. They estimate that Revenues that they will generate in the first year will be: $ 2,020,000 Their revenues will increase by 5% in the second year of the project and stay at that level for the remaining 5 years of the project (a total of 7 years). They have Gross Margins of 35% excluding Depreciation. Their selling, general, and Admin Expenses, exclusing Depreciation will be 10% of Revenues each year. They have just paid $200,000 in consulting fees for engineering design of the facility. To start the project they need to invest in Equipment now. They know that this equipment will cost: $ 1,620,000 The Capital Expenditures will be depreciated, straight line, over 10 years. After the seven years of these project WCCC will stop all production on the property and sell the Equipment for $400,000. WCCC will need $150,000 of net working capital now. In the next 6 years the net working capital balance will be 7% of Revenues. They will fully recover the working capital by the end of year 7. They will take on a Small Business Loan to fund the project and the Interest Expense will be constant at $100,000 for each of the 7 years. WCCC has a total tax rate of 25% and uses a discount rate of: a) What is the NPV of the Project? b) What is the IRR of the Project? c) Whata decision should WCCC make regarding this project? 13.65% d) What is their EBIT Breakeven Quantity in year 1 if their contribution margin is $10 per ton of cement?