Litchfield Design is evaluating a 3-year project that would involve buying a new piece of equipment for 360,000 dollars today. The equipment would be depreciated straight-line to 50,000 dollars over 2 years. In 3 years, the equipment would be sold for an after-tax cash flow of 55,000 dollars. In each of the 3 years of the project, relevant revenues are expected to be 254,000 dollars and relevant costs are expected to be 109,000 dollars. The tax rate is 50 percent and the cost of capital for the project is 10.37 percent. What is the NPV of the project? Number What is the NPV of project A? The project would require an initial investment in equipment of 44,000 dollars and would last for either 3 years or 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of 15,400 dollars per year are expected each year until the project ends in either 3 years or 4 years. In 1 year, the project is expected to have an after-tax terminal value of 29,412 dollars. The cost of capital for this project is 13.76 percent. Number Oxygen Optimization is considering buying a new purification system. The new system would be purchased today for 18,600 dollars. It would be depreciated straight-line to 1,400 dollars over 2 years. In 2 years, the system would be sold and the after-tax cash flow from capital spending in year 2 would be 2,700 dollars. The system is expected to reduce costs by 7,200 dollars in year 1 and by 14,200 dollars in year 2. If the tax rate is 50 percent and the cost of capital is 10.27 percent, what is the net present value of the new purification system project? Number