Question: stion comprenonstar 2 points QUESTION 1 xyz is considering a project that would last for 3 years and have a cost of capital of 19.10

 stion comprenonstar 2 points QUESTION 1 xyz is considering a project

stion comprenonstar 2 points QUESTION 1 xyz is considering a project that would last for 3 years and have a cost of capital of 19.10 percent. The relevant level of net working capital for the project is expected to be $2.179.50 immediately (at year 0:54 610.00 in 1 year: 515200.00 in 2 years and $0.00 in 3 years. Relevant expected revenue.costs, depreciation and cash flows from capital spending in years 0, 1.2 and 3 are presented in the following table. The tax rate is 19.00 percent. What is the net present value of this project? Year 0 Year 1 Year 2 Year 3 Revenue $ 0.00 $13,500.00 $13,700.00 $10,700.00 Costs $0.00 $3.960.00 $3.580.00 $2.700.00 Depreciation $0.00 $2,450.00 $2,250.00 $2,700.00 Cash fows from capital speriding 5-7.550.00 51.170.00 $ 640.00 53.70000 O $6091 90 (plus or minus 510) $10018 32 (plus or minus 510) $850.49 (plus or minus $10) 511469.45 (plus or minus $10) None of the above is within $10 of the correct answer 2 points Cave QUESTION 2 What is the expected after tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $88.100.00, the tax rate is 20.00, the equipment is sold in 2 years for $17.900.00 and MACRS depreciation is used where the depreciation rates in years 1.2.3, and 4 are 40.00%, 35.00, 26,00% and 5.00%, respectively 514,320 (plus or minus $10) $22,850 (plus or minus $10) $17.620 (plus or minus $10) $18.725 (plus or minus 510) None of the above is within $10 of the correct

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