1. At the end of a tax year, a company has the following data: Gross receipts (sales) $700,000 Cost of goods sold $10,000 Tax depreciation $20,000 Book depreciation $10,000 Interest on debt $5,000 What is the company's tax liability (tax) and effective tax rate? 2. For the net cash flows given below, determine the following: (a) The net present value if MARR equals 20%. Is the project acceptable? Why? (b) The internal rate of return. Is the project acceptable? Why? (c) The payback period. End of Year 2 Net Cash Flow -20,000 -20,000 -20,000 -20,000 40.000 20.000 10,000 20,000 20.000 20.000 20,000