You are a donor to a local nonprofit organization HelpAVet and have been asked to provide a recommendation about a project. Angela Ash, the administrator of HelpAVet, has just inherited money from her mother's estate. She is considering investing part of these funds in a small catering operation to complement HelpAVets current social action projects. She hopes to help jobless veterans by giving them a new skill. HelpAVet will not pay need to pay any taxes related to the project.

• She will need to purchase two delivery vans, pots, pans, computers, and various other equipment costing $275,000 to start the business right now and
• She will be required to set aside $30,000 in working capital that will be released at the end of the project (at the end of year 6)
• Angela's marketing studies indicate that the annual cash sales revenue from the project will amount to:

Sales Year 1	$90,000
Sales Year 2	$100,000
Sales Year 3	$110,000
Sales Year 4	$120,000
Sales Year 5	$130,000
Sales Year 6	$140,000

• She will need to purchase the food from local farmers as follows:

Cost of food year 1	$27,000
Cost of food year 2	$30,000
Cost of food year 3	$33,000
Cost of food year 4	$36,000
Cost of food year 5	$39,000
Cost of food year 6	$42,000

• She will need to pay rent and utilities on the building to be used to prepare the food.

Cost for Rent & Utilities Year 1	$19,000
Cost for Rent & Utilities Year 2	$19,000
Cost for Rent & Utilities Year 3	$19,000
Cost for Rent & Utilities Year 4	$19,000
Cost for Rent & Utilities Year 5	$19,000
Cost for Rent & Utilities Year 6	$19,000

• Angela will use volunteers so she will not need to pay labor. She hopes to use the catering business to teach new skills to the unemployed.
• Angela wants to operate the catering business for only six years.
• She estimates that the vans could be sold at the end of the sixth year for $10,000
• Ignore taxes and depreciation as HelpAVet is a tax-exempt organization.
• HelpAVet uses a required rate of return of 5%

Compute the net present value of the investment. Your answer should be in the form $99.99 (round to the nearest cent).

Compute the Internal Rate of Return for the project. You should show it as percentages with two points after the decimal - for example, 29.59%.