1. Lyndon Company has been offered a contract to build a bridge for the state of Michigan. The contract would expire in ten years. The projected cash flows that result from the contract are given below:st of equipment $500,000 Working capital needed $100,000 Net annual cash inflows $80,000 Salvage value of equipment in ten years $40,000 Working capital released $100,000 The company's required rate of return and discount rate is 12%. The working capital would be released at the end of project. What is the net present value of the project? a. $(102,904) b. $(135,104) c. $102,904 d. $135,104

2. Should the project be accepted? a. Yes. b. No.