Your company is considering expanding operations and buying a new machine to handle the increased volume. The machines basic price is $100,000, and it will cost another $15,000 to modify it for special use by your firm. The machine falls into the MACRS three-year class, and it will be sold after three years for $15,000. Use of the machine will require an increase in net working capital (inventory) of $3,000. The machine will increase revenues by $50,000 per year, and is expected to increase annual costs by $5,000. The firm's marginal tax rate is 40 percent. MACRS3: Year 1 = .33; Year 2 = .45; Year 3 = .15; Year 4 = .07

If the expansion project has a required rate of return of 9%, what is the NPV?

The answer is : -$1,226

Also what's the IRR?

answer is: 8.4% but please explain steps

Just need to understand the problem with shown work.

Yes that is perfectly fine, I really appreciate that!