Question: Please solve these two finance questions ns and Problems Calculating Project NPV Flatte Restaurant is considering the purchase of a $7.500 soume maker. The soufl

 Please solve these two finance questions ns and Problems Calculating Project

Please solve these two finance questions

ns and Problems Calculating Project NPV Flatte Restaurant is considering the purchase of a $7.500 soume maker. The soufl maker has an economic life of five years and will be fully 1. depreciated by the straight-line method. The machine will produce 1,300 souffls per year, with each costing $2.15 to make and priced at $5.25. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make the purchase? 72. Calculating Project NPV The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year l.. Year 2- Year3.Year,4 Investment Sales revenue Operating costs Depreciation Net working capital spending $27.400 $12,900 $14,000 $15,200 i 200 2,100 6.850 6.850 2,700 2,800 2,900 6,850 6,850 300 200 225 a. Compute the incremental net income of the investment for each year b. Compute the incremental cash flows of the investment for each year. c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? idering a new three

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