You are chairing the capital budget committee of a corporation. There is an upcoming six-year capital equipment project that you would need to know the NPV and IRR. The work team inform you that: the project generates the following cash flows:

$50 Million cash investment in year zero; $7 Million cash inflow per year in first five years; $15 Million cash inflow in the sixth year plus the project generates an additional $10 Million cash inflow in year six from the salvage of the project equipment. The work team reaffirm that the cash investment happens at time zero and the cash inflows all happen at the end of each year. The company has a 12% cost of capital.

What would be the NPV and IRR? Should the project be accepted or rejected, why?

Note : Please write the full steps and formulas to complete the answer otherwise partial marks will be given