2. ETP Co. has an investment opportunity for Project W costing (initial investment) ($110,000) that is...

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2. ETP Co. has an investment opportunity for Project W costing (initial investment) ($110,000) that is expected to yield the following cash flows over the next five years: (a negative number means a cash outflow) Year 1: $44,000 Year 2: $27,000 Year 3: $24,000 Year 4: $30,000 Year 5: $39,000 Disinvestment payment at Year 5: $9,000 - This is a positive number a. Find the NPV of the investment at a discount rate of 10%. b. Does this capital project appear to be a favorable investment based on NPV? Why or Why Not? c. What is the profitability Index of this project d. If a second project (X) with an initial investment of $50,000 which has a profitability index of 1.05 was also being considered, which project (W or X) would be best and why? 2. ETP Co. has an investment opportunity for Project W costing (initial investment) ($110,000) that is expected to yield the following cash flows over the next five years: (a negative number means a cash outflow) Year 1: $44,000 Year 2: $27,000 Year 3: $24,000 Year 4: $30,000 Year 5: $39,000 Disinvestment payment at Year 5: $9,000 - This is a positive number a. Find the NPV of the investment at a discount rate of 10%. b. Does this capital project appear to be a favorable investment based on NPV? Why or Why Not? c. What is the profitability Index of this project d. If a second project (X) with an initial investment of $50,000 which has a profitability index of 1.05 was also being considered, which project (W or X) would be best and why?