11-11. Sunstone, Inc., has entrusted financial analyst Flower Belle Lee with the evaluation of a project that involves buying a new asset at a cost of $90,000. The asset falls under the MACRS three-year class and will generate the following revenue stream: End of Year 2 3 Revenues ($) 50,000 30,000 20,000 20,000 The asset has a resale value of $10,000 at the end of the fourth year. Sunstone's discount rate is 11 percent. The company has an income tax rate of 30 percent. Should Flower recommend purchase of the asset? 11-12. Moonstone, Inc., a competitor of Sunstone, Inc., in problem 11-11, is considering purchasing similar equipment with the same revenue, initial investment, MACRS class, and resale value. Moonstone's discount rate is 10 percent and its income tax rate is 40 percent. However, Moonstone is considering the new asset to replace an existing asset with a book value of $20,000 and a resale value of $10,000. What would be the NPV of the replacement project? 11-13. You have just joined Moonstone, Inc. as its new financial analyst. You have learned that accepting the project described in problem 11-12 will require an increase of $10,000 in current assets and will increase current liabilities by $5,000. The investment in net working capital will be recovered at the end of year 4. What would be the new NPV of the project