Question 19 (0.5 points) If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the project. The IRR is equal to the required rate of return. IRR must also equal zero. A decrease in the project's initial cost will cause the project to have a negative NPV. Any delay in receiving the projected cash inflows will cause the project to have a positive NPV. An investment project has only the following cash flows: initial cash outflow is $2,000,000; cashflow from year 1 through year 8 is $400.000 each (1.e. cash inflow in year 1 400,000, cash inflow in year 2 is 400.000, etc). If the required rate of return is 12%, what decision should be made using NPV? Accept; the NPV is $12,944 Accept; the NPV is $6,433 Reject; the NPV is -$6,433 Reject; the NPV is -$12.944 Question 8 (1 point) Saved Hawkeye Innovations is considering developing a new type of mouse trap. They have made the following estimates regarding the development of the new product: The life of the project is 7 years The project will require additional equipment that will cost $21.000. None of the equipment will have any salvage value. Sales are expected to be 10.000 units per year at $4.50 per unit Variable costs are expected to be $2.60 per unit Fixed costs are expected to be $12.000 per year The annual Depreciation expense would be $3.000 Additional Net Working Capital will be needed in Year 0 in the amount of $8,000. 60% of this will be recovered in Year 7 The company's tax rate is 34% The Required Rate of Return on the project is 10% What is the project's Net Present Value? $3,328.22 $921.04 $8.921.04 $3,164.68