Answer both otherwise not

2. The additional dining space will occupy space next to Olafs that was recently rented to a tenant. By claiming the space for the project, the firm will no longer be able to rent the space at $1,000 per month. Kristoff wants to evaluate this project over a four year time period. The after-tax operating profit margin on the renting the space is 30%. If Kristoff wants a 9% APR on Olaf cash flows, what is the present value of this opportunity cost? (rent is paid as the beginning of the month)

3.

Olafs Pizza Company is considering adding more dining space to its already successful restaurant. The owner, Kristoff, has determined that the new dining space will add $100,000 per year in additional sales. The expenses on the expansion will be 45% of the new sales. As part of the expansion, additional cooking equipment will be purchased with an installed cost of $30,000. The equipment will be depreciated using a 7-year MACRS schedule. The tax rate facing the firm is 35%

What is the project cash flow for year 1 of the project?