Question $1$:

A beauty product company is developing a new fragrance named Happy Forever. There is a probability of $0\mathrm{.}46$ that consumers will love Happy Forever, and in this case, annual sales will be $1\mathrm{.}00$ million bottles; a probability of $0\mathrm{.}36$ that consumers will find the smell acceptable and annual sales will be $170,000$ bottles; and a probability of $0\mathrm{.}18$ that consumers will find the smell unpleasant and annual sales will be only $45,000$ bottles. The selling price is $$35,$ and the variable cost is $$8$ per bottle. Fixed production costs will be $$1\mathrm{.}00$ million per year, and depreciation will be $$1\mathrm{.}15$ million. Assume that the marginal tax rate is $27$ percent. What are the expected annual incremental after$-$tax free cash flows from the new fragrance? $($Round answer to $0$ decimal places, e$.$g$.5,275.)$

Annual incremental cash flows $ $=$

Question $2$:

Crane Lumber, Inc., is considering purchasing a new wood saw that costs $$65,000.$ The saw will generate revenues of $$100,000$ per year for five years. The cost of materials and labor needed to generate these revenues will total $$60,000$ per year, and other cash expenses will be $$10,000$ per year. The machine is expected to sell for $$3,000$ at the end of its five$-$year life and will be depreciated on a straight$-$line basis over five years to zero. Crane's tax rate is $26$ percent, and its opportunity cost of capital is $10\mathrm{.}40$ percent.

What is the project's NPV$?($Do not round intermediate calculations. Round final answer to O decimal places, e$.$g$.5,275.)$

NPV $ $=$

Question $3$:

Sunland Company is considering buying a new farm that it plans to operate for $10$ years. The farm will require an initial investment of $$12\mathrm{.}00$ million. This investment will consist of $$2\mathrm{.}55$ million for land and $$9\mathrm{.}45$ million for trucks and other equipment. The land, all trucks, and all other equipment are expected to be sold at the end of $10$ years for a price of $$5\mathrm{.}00$ million, which is $$2\mathrm{.}35$ million above book value. The farm is expected to produce revenue of $$2\mathrm{.}05$ million each year, and annual cash flow from operations equals $$1\mathrm{.}95$ million. The marginal tax rate is $25$ percent, and the appropriate discount rate is $10$ percent. Calculate the NPV of this investment. $($Do not round factor values. Round final answer to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.)$

NPV $ $=$