The weighted average cost of the capital (wacc) = 0.067989897the net working capital for 2016 is $8 million. to improve the operational efficiency, pe hopes to reach the following goals from 2017 on: the accounts receivable will be 45 days of sales revenue, the raw materials will have 20 days of inventory, the finished goods will have 30 days of inventory; the minimum cash balance will be 30 days of sales. the wage payable will be 15 days of labor costs (including both the direct labor cost and administrative costs) and other account payable will be 60 days of raw materials and sales & marketing costs. to increase the firm value, if the interest expense in each year is half of ebit in 2016, pe believes that the debt level is safe. in other words, pe wants to increase the debt level so that the interest expense for each year equals half of the ebit of 2016 from 2017 on. the interest rate for the safe debt is 5% per year. after five years, the growth rate for the free cash flow is believed to be 3% per year.

based on these assumptions, what is the npv of acquiring young llc.? from pe’s point of view, what’s irr of this investment?