1. Annual sales forecasts can be tricky to estimate. Hats Over Yonder, Inc. has historically found that the precision of estimates is not great. They have come up with an estimated table of best, base, and worst-case scenarios for NPV based on potential errors in estimation precision: Find the Expected NPV (EV), the standard deviation of the NPV (NPV), and the Coefficient of Variation (CVNPV). I. Tucca Global is facing their new capital budgeting year with 2 mutually exclusive projects, S and L. The company's required rate of return is ten percent. The following are the projected cashflows for S:$100,000 in year 0,$59,000 in year 1 , 59,000 in year 2. Project cashflows for project L are estimates to be: ($100,000),$33,500,$33,500,$33,500, $33,500, in years 0,1,2,3, and 4 , respectively. 1. What is the NPV of project S? What is the NPV of project L? 2. Which project should you choose and why? Use the replacement chain approach and show all calculations in detail 3. What if you chose to use the Equivalent Annual Annuity approach instead? Show how you would do that with all calculations. III. See the following for Sparkling, Inc: Net working capital -- $4,300, Current Liabilities - $7,000, Inventory $3,600. a. Find the current ratio b. Find the quick ratio For another company, XRZ, Equity multiplier -1.33 Total Asset Turnover-1.58 Profit Margin - 7.1\%