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12) A firm is looking to invest $500,000 in a capital project that will potentially yield net after-tax cash flows of $200,000 at the end

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12) A firm is looking to invest $500,000 in a capital project that will potentially yield net after-tax cash flows of $200,000 at the end of each of the next three years. The firm typically uses a discount rate of 10% for caplial projects, but has invested in projects at lower discount rates in some instances in the past. What is the net present value of the project at a 10% discount rate? a. (2 points) Present Value of Benefits: b. (1 point) Present Value of Costs: c. (1 point) Net Present Value: d. (2 points) Should the firm invest in the capltal project? Explain. Recalculate the NPV with a discount rate of 3%. e. (2 points) Present Value of Benefits: f. (1 point) Present Value of Costs: 9. (1 point) Net Present Value: h. (2 points) Should the firm invest in the project at a 3% discount rate? Explain. 1. (2 points) If the IRR p-value for this prolect is approximately 9.7\%, should tho firm invest in the capital project? Explain

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