1. Consider a capital expendeture project to purchase and install nde equipment with an initial cash outlay of $35,000. The project is expectef to generate net after tas flows esch yeat of $5,000 for ten yeafs and at the enf of the project a one time after tax cash flow of $11,000 id expected. The firm has a weighted average cost of capital of 7.5 percent and required a 4 year payback on projects of this type. Determine whether this project should be accepted to rejected usinh NPV.

a. accept since tje NPV id $74,657.54 and is greater than zero

b. accept since NPv is $4,657.54 and is greater than zero

c. Accept since NPv = $39,657.54 and its greater than zero

d. reject since NPC os -$-74,657.54 and is less than zero

e. nome of the listed choices is correct

Consider a capital expenditure project to purchase and install new equipment with an initial cash outlar of 535000 . The preifet aher-tax cash flow of $11,000 is expected. The firm has a weighted average cost of capital of 7.5 percent ind requires a 4 war purback on projects of this type. Determine whether this project should be accepted or rejected ushs NeV