Additional sales 3000 units Initial investment -40000

Market price 4 dollars Marginal tax rate 30%

Cost per unit 0.8 dollars
Fixed costs 600 dollars
Salvage value 4000 dollars
Discount rate 8%

Cash flows
0 1 2 3 4 5 6 7 8
-40000 8700 8700 8700 8700 8700 6300 6300 6300

NPV $13,152.96
IRR 15.25%
 9 10
6300 9100