We Question Completion Status: b. 11.50% (plus or minus 0.05 percentage points) c. 12.32% (plus or minus 0.05 percentage points) d. 12.55% (plus or minus 0.05 percentage points) Oe. None of the above is within 0.05 percentage points of the correct answer QUESTION 18 5 What is the NPV of the new machine project? The project would require an initial investment in equipment of $67,000 and would last for either 3 years or in 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of $21,000 per year are expected each year until the project ends in either 3 years or 4 years. In 1 year, the project is expected to have an after-tax terminal value of $48,000. The cost of capital for this project is 14.5 percent. a. -$18,652 (plus or minus $100) b.-$12,513 (plus or minus $100) C. -$6,738 (plus or minus $100) d. -$6,434 (plus or minus $100) e. None of the above is within $100 of the correct answer QUESTION 19 5 pa Pierre Wineries is evaluating a project that would require an initial investment in equipment of $80,000 and that is expected to last for 6 years. MACRS depreciation would be used where the depreciation rates in years 1, 2, 3, 4, and 5 are 40.0%, 25.0%, 15.0%, 10.0%, and 10.0%, respectively. For each year of the project, Pierre Wineries expects relevant annual revenue associated with the project to be $49,000 and relevant annual costs associated with the project to be $30,000. The tax rate is 50 percent. What is (X plus Y) if X is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and Y is the relevant OCF associated with the project expected in year 3 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window