You are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $180,000 per year; the initial investment costs are $640,000; and the estimated annual costs are $44,000, which begin decreasing by $4,000 per year starting at the end of the second year. Assume an 8-year analysis period, no salvage value, and MARR = 15%.

What is the PW of this proposal?

What is the IRR of this proposal?