Please show work

2.)

Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects:
Year	0	1	2	3
Sales (Revenues)		150,000	150,000	150,000
- Cost of Goods Sold (50% of Sales)		75,000	75,000	75,000
- Depreciation		25,000	25,000	25,000
=EBIT		50,000	50,000	50,000
- Taxes (35%)		17,500	17,500	17,500
= unlevered net income		32,500	32,500	32,500
+ Depreciation		25,000	25,000	25,000
+(-) increase/(decrease) in working capital		5,000	5,000	-10,000
- capital expenditures	-90,000
The net present value (NPV) for Epiphany's Project is ________.

1.)

CathFoods will release a new range of candies which contain anti-oxidants. New equipment to manufacture the candy will cost $4million, which will be depreciated by straight-line depreciation over six years. In addition, there will be $5million spent on promoting the new candy line. It is expected that the range of candies will bring in revenues of $6million per year for five years with production and support costs of $1.5 million per year. If CathFoods' marginal tax rate is 35%, what are the incremental earnings in the second year of this project?