Question 2 (2 points) Genetics Engineering is considering the purchase of some new equipment that will cost $300,000 installed. The equipment will produce a product that must be FDA approved and this will require at least two years. Year 1 and Year 2 the company will have net cash outflow of $95,000 and $50,000. Year 3 to 5, the company will generate net cash inflows of $200,000, $240,000, and $330,000. At the end of 5 years the equipment and the product will be obsolete. If the firm's costs of capital is 16%, should they invest in the new equipment? No. NPV = $12,170 Yes, NPV=$12,376 Yes, NPV=$2,072 No. NPV = $1,256 Question 6 (2.25 points) Wiley Enterprises is considering a project that has initial investment of $1825. It produces cash inflow of $450 at the end of first year. This cash flow grows at 10% for years 2 through 5. What is the project's NPV if company is expecting its WACC to be 12%? $296.20 -$202.85 $113.45 O $220.45 $183.93