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  3. 2. you have the following capital budgeting projec

2. You have the following capital budgeting project. Upfront machinery costs $60 MM with a...

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Finance

2. You have the following capital budgeting project. Upfront machinery costs $60 MM with a six-year useful life. Sales for the project are $50 MM each year for six years. Cost of goods sold is $30 million a year and includes depreciation expense. Marginal Tax Rate is 30%. What is the NPV of the project if the cost of capital is 12%? What is the IRR?

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