1. E. Construction evaluates all of its projects by applying the NPV decision rule. Using a required return of 20 percent, compute the NPV for the following cash flows. Year Cash Flow w No -$12,000 7,000 7,000 2. The cash flows for a 4-year investment in Bolivia are given below. Compute the discounted payback using a 20 discount rate. Time 0 1 2 3 4 Cash Flow -5,000 3,000 2,000 2,000 2,000 3. Your old bush-whacking machine was purchased seven years ago for $140,000. You are depreciating the machine using straight-line depreciation to a zero salvage value over its 10-year life. You can now sell it for $30,000. What is its after tax salvage value? The corporate tax rate is 35 percent