1. The Bass Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $13 million but realizes after-tax inflows of $5 million per year for 4 years. After 4 years, the machine must be replaced. Machine B costs $17 million and realizes after-tax inflows of $4 million per year for 8 years, after which it must be replaced. Assume that machine prices are not expected to rise because inflation will be offset by cheaper components used in the machines. The cost of capital is 10%. Which machine should be selected? (20 points) 2. You have been asked to evaluate a proposed project with the cash flows shown below. Assume that the project's required return is 10%. Should this project be accepted or rejected? Explain your decision. (10 points)