18. Building a new outlet will have an initial, upfront cost of $322,000. The required return for this project is 11%. The project is expected to produce the following cash flows over the next 6 years, before needing to be replaced. CF1: 60,000 CF2: 85,000 CF3: 92,000 CF 4-6: 115,000. However, there is a 15\% chance the cash flows will be CF1: 3,000 CF2: 5,000 CF3: 7,000 CF 4-6: 9,000 . What is the expected NPV of this project if you have the option to abandon this project after 2 years? C12 A. $4,730 B. $15,441 C. $27,939 D. $18,400 E. $3,325.85 19. Lancomb London is considering adding a new widget carver to its location. The widget carver would cost $81,000, which would be depreciated on a straight-line basis over its 7 -year life. After 7 years the machine would be scrapped and have no residual value. NWC of $7000 is saved at the beginning of the project. The estimated annual income from this giant widget carver would be $24,300 after costs are deducted from revenue. The current tax rate is 25%. What is the year 7 cash flow, which is the end of the project? C12 A. $28,118 B. $14,118 C. $22,868 D. $18,225 E. $29,514 15. 2 years ago, Nancy Ninjas bought a bottling machine for $420,000, with the expectation that the machine would be scrappec and have no salvage value after the project ends. Depreciation was on a straight-line basis over a 7 -year period. Nancy has consistently received operating cash flow from this project of $111,000 each year. Nancy has now decided that after year 6 , the machine can be sold and expects to sell it for $31,500. Nancy's tax rate is 26%. What will be the year 6 cash flow from this investment? C12 A. $111,000 B. $124,641 C. $149,910 D. $142,500 E. $171,000