Calculate the npv and irr of the project

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The DoD just asked for a request for proposal (RFP) to deliver 10 armored vehicles over the course of 5 years. The contract will pay 5 million per year with an incentive if all vehicles are delivered ahead of schedule starting with the fourth year with an additional 2 Million per additional vehicle delivered. In order to fulfill this kind of project, the company would have to hire 10 full time employees with average salaries of $80,000 per year with an additional cost per employee of $30,000 per year. An additional 1 Million in supplies will also be necessary. There will also have to be an infrastructure upgrade that will have to be completed at an estimated cost of 2 million dollars in order to house all supplies and assemble the products.

Calculate the NPV and IRR of the project. should the project be done?

Reference no: EM131906539

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