Question: Question 9 1 pts CoolTech Inc. is considering a new refrigerated warehouse which will cost $7,000,000 and is expected to have revenues of $700,000 at

 Question 9 1 pts CoolTech Inc. is considering a new refrigerated
warehouse which will cost $7,000,000 and is expected to have revenues of

Question 9 1 pts CoolTech Inc. is considering a new refrigerated warehouse which will cost $7,000,000 and is expected to have revenues of $700,000 at the end of each of the next 5 years and expenses of $200,000 for years 1-3 and $250,000 for years 4-5. The warehouse is depreciated for 40 years on a straight line basis and expects to have a salvage value of $1,000,000. At the end of 5 years, they expect to sell the warehouse for $5,000,000. Working capital requirements will be $135,000 up front. CoolTech's tax rate is 40% and their cost of capital is 11%. CoolTech's NPV is $ Answer in dollars, rounded to two decimal places. Question 10 1 pts We are replacing a fully depreciated old food processing machine with a new, more efficient model which costs $10000. The machine would be depreciated on a straight-line basis over its 3-year useful life to a book value of $500. At the end of the life of the project (at the year 3 point), the machine will be sold for an estimated $800. The old machine has zero book value and will be scrapped for no money. The project will cause an increase in Sales of $7000 in each of years 1 through 3. It is also expected to enhance efficiencies thereby reducing operating expenses by $3000 in each of years 1 through 3. The project will require an increase in Accounts Receivable of $500 and an decrease in Accounts Payable of $1700 up front. The firm's marginal tax rate is 40%, and its WACC is 12%. The NPV of this project is $_ rounded to two decimal places. Answer in dollars

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