1) Marshall Inc., is looking at a new bottle system that costs $457,444. It will cost an additional $40,098 to modify the system for special use by the firm. The new equipment is classified as five-year property under MACRS (20%, 32%, 19.20%, 11.52%, 11.52%, and 5.76%). Suppose the bottle system will be scrapped for $96,775 at the end of year 4. The new system will increase pre-tax revenues by $152,674 per year, but pre-tax costs will also increase by $28,188 per year. The system requires an initial investment in net working capital of $38,334. If the tax rate is 32 percent and the discount rate is 9.7 percent, what is the NPV of this project?

[Round the final answer to the nearest cent]

2) Lily Inc., is contemplating the purchase of a new $486,762 glass manufacturing system. Delivery costs for the system will amount to $27,557 and the firm will need to pay an additional $30,264 in modification costs. The firm spent the last six months traveling to several manufacturing plants to analyze various pieces of equipment, which cost the firm $19,697. The system will be depreciated straight-line to zero over its five-year life. The firm plans on salvaging the equipment at the end of four years for $80,675. The new system will increase pre-tax revenues by $180,583 per year, but pre-tax costs will also increase by $89,485 per year. The firm will be able to reduce working capital by $46,744 at the beginning of the project, but will repay this at the end of the projects life. If the tax rate is 33 percent and the discount rate is 9.17%, what is the NPV for this project?

[Round the final answer to the nearest cent]