Ghost Squadron Historical Aircraft Inc. Is considering adding a rare World War H B_24 bomber to its collection of vinatge aircraft. The plane was forced down in Burma in 1942, and it has remained there ever since. flying a crew to Burma and collecting the wreckage will cost $100,000. Transporting all the parts to the company's restoration facility in Texas wll cost another $35,000. restoring the plane to flyable condition will cost an additional $600,000. GSHAI's operating costs will increase by $40,000 a year at the end of years 1 through 7. At the end of years 3 through 7, revenues from exhibition the plane at airshows will be $70,000. At the end of year 7, the plane will be retired. At that time, the plane will be sold to a museumfor $500,000.

The plane falls into the MACRS depeciation class for seven year assets. GSHAI's combined federal and sate income tax rate is 35 %, and the company's weighted average cost of capital is 12 percent. Calculate the NPV and IRR of the proposed investment in the plane.