Problem 9 A two-year project has an initial requirement of $500,000 for fixed assets and $50,000 for net working capital. The fixed assets will be depreciated using MACRS and the fixed asset falls into the three-year MACRS class. Depreciation rates for years 1 and 2 are 0.3333 and 0.4445. The estimated salvage value is $150,000. All of the net working capital will be recouped at the end of the 2 years. Management estimates that sales revenues less costs will be $700,000 per year for years 1 and 2. The discount rate is 12 percent and tax rate is 35 percent. What are the projects cash flows for years 0, 1, and 2? Problem 10 For the two-year project in question 9, what is net present value? Should the project be accepted?