Question: Question 25 (1 point) Answer questions 25, 26, 27, and 28 based on the following information: Webb Inc. is planning on starting a new product

Question 25 (1 point) Answer questions 25, 26, 27, and 28 based on the following information: Webb Inc. is planning on starting a new product line which is expected to have a two-year life The project will require an initial investment of $100,000. From the project, the incremental revenue and the incremental expenses (not including depreciation) will be $150,000 and $50,000, respectively. The government, in order to promote investment in this area of technology, will allow the investment to be written off in the two years as depreciation according to the following schedule: 60% in in the first year (as year 1 expense) and 40% in year 2 (as year 2 expense). Webb Inc. pays 30% tax, and its cost of capital is 20%. The equipment is not expected to have any resale value at the end of the project. The initial investment (at time t -0) is a) $100.000 Question 2611/point Operating Cash Flo b) $120,000 ) $ 91,000 od) $ 88,000 e) None of the above Question 27 (1 point) Operating Cash Flow for Year 2 is
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