Question: Question 2 builds off of Question 1 so please answer both A four-year project has an initial fixed asset investment of $500,000, an initial NWC

Question 2 builds off of Question 1 so please answer both Question 2 builds off of Question 1 so please answer both A

A four-year project has an initial fixed asset investment of $500,000, an initial NWC investment of $35,000 and an annual OCF of $50,000. The fixed asset is fully depreciated straight-line over the life of the project. At the end of the project, it will have the market value of $150,000. If the required return is 12% and tax rate is 21%, what is the project's EAC? Question 2: (10 pts) In Question 1, the projections for initial fixed asset investment, initial NWC investment (consider this as a simple cost), annual OCF and market value of fixed assets at the end of the project are all accurate to within \pm 10 percent. Calculate best case and worse case NPV

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