a) Based upon the following cash flows, Using NPV should Chipper Nipper Cookie Company introduce a new product, Rolling In Dough Pies? The initial investment is $180,000, and the cost of capital is 40%.

1. $80,000

2. $95,000

3. $95,000

4. $110,000

5. $110,000

6 .$110,000

b) Nyam-Bisco Cookie Company wants to introduce a new product, Rolling In Dough Pies. The initial investment would be $180,000 and the cost of capital is 40%. Based upon the following cash flows and a comparative rate of 50%, use the IRR as your decision c. $80,000

2. $95,000

3. $95,000

4. $110,000

5. $110,000

6. $110,000

c) Seduck has just replaced a set of hydraulic screens that had been in operation for 6 years with a newer screening system that cost $180,000 installed. The old system cost $140,000 and had been depreciated as a 10-year MACRS asset. Its salvage value is $10,000. What is the NINV for the new equipment? Assume a 40% tax rate. Use the rounded MACRS schedule listed below: (10-Year Depreciation Schedule: 10%, 18%, 14%, 12%, 9%, 7%, 7%, 7%, 7%, 6%, 3%)