1. You are the CEO of a mobile phone case manufacturer. You are considering purchasing a new 3-D printer to produce all of your product instead of buying it from a supplier. The 3-D printer will cost $1,000,000. The printer will be depreciated straight-line to $0 over 5 years. After 5 years the Printer is sold for $100,000. Due to purchasing the 3-D printer, you will be able to save $300,000 before taxes per year in production costs (After considering Depreciation). The tax rate is 30%. Assume a 15% annual required rate of return.

   1. What is the NPV of the project? (Hint: No need to add back depreciation when calculating Operating Cash Flow)

   2. What is the IRR for the project?

   3. Do we Accept the project? Why or why not?