===========

ACCOUNTING problem.

Please answer all in details to get UPVOTE

Thanks

Question 2: Evaluating i nvestment projects You are planning to invest $25,000 in research & development (R&D). This investment will generate cost savings of $17,500 in year 1 and $12,500 in year 2. After 2 years, the salvage value is zero. The cost of capital is 25% a year a) Compute the net present value. Should you invest? YES NO b) Following a government stimulus program, the cost of capital decreased to 10% a year. Compute the net present value at the new cost of capital Should you invest now? OYES NO