- Question 26 Red Royal Recycling is considering a project that would last for 2 years and have a cost of capital of 7.35 percent. The relevant level of net working capital for the project is expected to be 15,000 dollars immediately (at year 0); 20,000 dollars in 1 year; and 0 dollars in 2 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, and 2 are presented in the following table (in dollars). The tax rate is 50 percent. What is the net present value of this project? 1 point Number Help Year o Year 1 Year 2 Revenue 168,000 70,000 168,000 70,000 Costs $0 $0 -91,000 Depreciation Cash flows from capital spending 43,000 43,000 0 13,000 Number - Question 27 Green Forest Recycling is considering a project that would last for 2 years. The project would involve an initial investment of 71,000 dollars for new equipment that would be sold for an expected price of 58,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 23,000 dollars over 4 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 78,000 dollars per year and relevant annual costs for the project are expected to be 22,000 dollars per year. The tax rate is 50 percent and the cost of capital for the project is 6.69 percent. What is the net present value of the project? 1 point Number Help Number