Calculate the cash flows of the project given the following assumptions:

• Initial investment outlay of $60 million, comprised of $50 million for machinery with $10 million for net working capital (metal and gemstone inventory)
• Project and equipment life is five years
• Revenues are expected to increase $50 million annually
• Gross margin percentage is 60% (not including depreciation)
• Depreciation is computed at the straight line rate for tax purposes
• Selling, general, and administrative expenses are 5% of sales
• Tax rate is 30%, a reduced rate that reflects a tax credit due to the repurpose of the building

Compute net present value and internal rate of return of the project. You may use Excel to complete this project.