you are the financial manager for a pet food supply company that is currently at capacity. While sales have seen a steady increase of between 3-6% over the past several years, the marketing department has released the below industry information. The executive management team is working on strategic planning for the next 2-3 years and needs input from you. WACC 7.5% Tax rate 30%.

Purchase a more efficient machine for production line at a net initial investment of $100,000. This would allow for the possibility of increased sales, which may still result in overtime so no projected labor savings. The increased sales projection is not exactly known yet, but you were given the following probability data from marketing for the 3 year time span being reviewed. MACRS 3 year*. It is expected the machine could be sold at the end of the 3rd year for $30,000. Tax 30%.

New Sales Probability	Best scenario	0.15	80,000
	Most likely	0.60	50,000
	Worse scenario	0.25	30,000
	Expected cost/year	$9,000

What is the NPV$ and IRR?