Question: Question 1 2 pts A project costs $100,000, will be depreciated straight-line to zero over its 4 year life, and will require a networking capital
Question 1 2 pts A project costs $100,000, will be depreciated straight-line to zero over its 4 year life, and will require a networking capital investment of $5.000 up-front. The firm has a tax rate of 35% and a required return of 15%. The project generates an annual operating cash flow (OCF) of $45,000. What is the project's NPV? $-18,633.12 $ 23,474.03 o $ 26,332.79 $ 28,474.03 O $ 45,603.09 Question 2 2 pts Calculate the NPV of the following project cash flow using a discount rate of 7%: Yr 0 --$1,000; Yr 1--$80; Yr 2 = +$100; Yr 3 - +$400; Yr 4 - $500; Yr 5 = +$500 $77.04 $420.00 $2,226.57 $299.45 O S-108.05
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