0 1 2 3 4

50000 99000 148000 197000

Selling price 260 234 210.6 189.54
cost 120 96 76.8 61.44

Net Sales 13000000 23166000 31168800 37339380

less cost 6000000 9504000 11366400 12103680
Selling and admin 2800000 2800000 2800000 2800000
Research and Development -15000000 0 0 0 0
Depreciation 2500000 2500000 2500000
Earnings before taxes -15000000 1700000 8362000 14502400 22435700
less taxes -6000000 680000 3344800 5800960 8974280
Net Income -9000000 1020000 5017200 8701440 13461420
Cash flow from operation 3520000 7517200 11201440 13461420
Increase in NWC -1050000 -999000 -921000 -815000 3785000
Initial investment -7500000
Net operating cash flow -16500000 2470000 6518200 10280440 12646420 3785000

IRR

a
at 10% $ 9,844
at 12% $ 8,404
at 14% $ 7,075

28.32%
 $9,844,105.66 $8,403,779.59 $7,074,720.34
at 10% at 12% at14%
NPV NPV NPV

28.32%