QUESTION 1 XYZ is evaluating a project that would require an initial investment of $75,000 today. The project is then expected to produce annual cash flows that grow by 3.20 percent per year forever. The first annual cash flow is expected in 1 year and is expected to be $6,300. The project's Internal rate of return is 11.60 percent and its cost of capital is 7.60 percent. What is the net present value (NPV) of the project? a. An amount equal to 50 b. An amount greater than 50 but less than $25,000 c. An amount equal to or greater than $25,000 but less than $50,000 d. An amount equal to or greater than $50,000 but less than 575,000 e. An amountless than 50 or an amount that is equal to or greater than $75,000 QUESTION 2 XYZ is evaluating the claw machine project. During year 1, the claw machine project is expected to have relevant revenue of $95,000, relevant variable costs of $35.000, and relevant depreciation of $0. In addition XYZ would have one source of fixed costs associated with the claw machine project. Yesterday, XYZ signed a deal with Ruby Marketing to develop a marketing campaign for use in the project. The terms of the deal require XYZ to pay Ruby Marketing either $15,000 in 1 year if the project is pursued or $20,000 in 1 year if the project is not pursued. Relevant net income for the claw machine project in year 1 is expected to be $37,000 What is the tax rate expected to be in year 17 a. A rate less than 40.00% or a rate equal to or greater than 60.00% b. A rate equal to or greater than 40.00% but less than 45.00% c. A rate equal to or greater than 45.00% but less than 50.00% d. A rate equal to or greater than 50.00% but less than 55.00% A rate equal to or greater than 55.00% but less than 60.00%