\fAlgoma Incorporated has a capital structure Which is based on 25 % debt, 15 % preferred stock, and 60 % common stock. The after-tax cost of debt is 8 %, the cost of preferred is 9 %, and the cost of common stock is 10%. The company is considering a project that is equally as risky as the overall rm. This project has initial costs of $140,000 and cash inows of $90,000 a year for two years. What is the projected net present value of this project? 0 $17,571.58 0 $21,332.98 0 $17,146.07 0 $18,427.44 0 $19,074.82 QUESTION 19 If you want to determine the entire range of project outcomes that are reasonably likely to occur you should use analysis. 0 Financial break-even. 0 Cash break-even. 0 Scenario. 0 Accounting break-even. 0 Sensitivity. QUESTION 20 John's Restaurant Furniture sells 5000 plastic chairs, 3,000 metal chairs, and 2,000 wooden chairs each year. John is considering adding a resin chair and expects to sell 3,500 of them. If the new resin chairs are added, John expects that plastic chair sales will decline to 2,200 units and metal chair sales will decline to 1,200 chairs. Sales of the wooden chairs will remain the same. Plastic chairs sell for an average of $75 each. Metal chairs are priced at $65 and the wooden chairs sell for $55 each. The new resin chairs will sell for $50. What is the erosion cost? 0 $300,000 0 $416,500 0 $358,000 0 $327,000 0 $295,000