Blue Eagle Technology is considering a project that would last for 2 years. The project would involve an initial investment of 92,000 dollars for new equipment that would be sold for an expected price of 78,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 20,000 dollars over 4 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 80,000 dollars per year and relevant annual costs for the project are expected to be 23,000 dollars per year. The tax rate is 50 percent and the cost of capital for the project is 8.32 percent. What is the net present value of the project?

Litchfield Design is evaluating a 3-year project that would involve buying a new piece of equipment for 250,000 dollars today. The equipment would be depreciated straight-line to 30,000 dollars over 2 years. In 3 years, the equipment would be sold for an after-tax cash flow of 43,000 dollars. In each of the 3 years of the project, relevant revenues are expected to be 176,000 dollars and relevant costs are expected to be 79,000 dollars. The tax rate is 50 percent and the cost of capital for the project is 9.89 percent. What is the NPV of the project?