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%.

Option A: R&D project to develop new dog food that caters to the clean eating trend to help ensure long term growth. The new product would be launched next year at an initial cost of $360,000.

	1	2	3
New Sales	200,000	$400,000	$500,000
Less costs	120,000	240,000	300,000
Net CF

What is the NPV$ and IRR % of initial cost of $360,000?