You have the following cost and revenue information on a project that invests in the conversion of a coal-fired electricity generating plan into a gas-fired unit.

Cost of new equipment: $240 million.

The equipment will be depreciated over 8 years on a straight-line basis to zero book value.

Proceeds from the sale of old equipment which has a book value of $15 m is 40 million,

Expensable installation cost: 0.50 million.

Estimated Revenue from the sale of electricity in the first year: $65 million and it remains the same for all 8 years;

Cost of gas: $25 million;

Operating and other expenses: $4 million;

Initial working capital expenses: $1 million;

Projects assets estimated resale value: $65 million.

The project is subject to a tax rate of 30%,

Anticipated clean-up expense: $1.0 million.

The investment is eligible for $1.50 million investment tax credit.

The weighted average cost of capital (WACC) of the project is 5%.

Using these data,

calculate the following cash flows associated with the project: (i) Net initial investment outlay; (ii) Net operating cash flows (NOCF) also known as CFAT and (iii) net salvage value, and

assuming the net operating cash flows will remain the same for all 8 years, calculate the NPV and the IRR of the project.