$2$a$.$ Your firm is evaluating a capital budgeting project. The estimated cash flows appear below. The board of directors wants to know the expected impact on shareholder wealth. Knowing that the estimated impact on shareholder wealth equates to net present value $($NPV$),$ you use your handy calculator to compute the value. What is the project's NPV$?$ Assume that the cash flows occur at the end of each year. The discount rate $($i$.$e$.,$ required rate of return, hurdle rate$)$ is $14\mathrm{.}4\%.($Round to nearest penny$)$

Year $0$ cash flow

$-133,000$

Year $1$ cash flow

$53,000$

Year $2$ cash flow

$40,000$

Year $3$ cash flow

$45,000$

Year $4$ cash flow

$42,000$

Year $5$ cash flow

$30,000$

$2$b$,$

US Robotics is evaluating a new product line. The CFO asks for an estimate of number of years to recover the initial investment, ignoring the time value of money. You realize that this is the payback period. The estimated cash flows from the new product line appear below. $($Answer in years, round to $2$ places$)$

Year $0$ cash flow $=-80,000$

Year $1$ cash flow $=-37,000$

Year $2$ cash flow $=24,000$

Year $3$ cash flow $=38,000$

Year $4$ cash flow $=41,000$

Year $5$ cash flow $=39,000$

Year $6$ cash flow $=30,000$

Year $7$ cash flow $=22,000$

$2$c$,$

Your firm is evaluating a capital budgeting project. The estimated cash flows appear below. The board of directors wants to know the expected impact on shareholder wealth. Knowing that the estimated impact on shareholder wealth equates to net present value $($NPV$),$ you use your handy calculator to compute the value. What is the project's NPV$?$ Assume that the cash flows occur at the end of each year. The discount rate $($i$.$e$.,$ required rate of return, hurdle rate$)$ is $15\mathrm{.}5\%.($Round to nearest penny$)$

Year $0$ cash flow

$-121,000$

Year $1$ cash flow

$41,000$

Year $2$ cash flow

$45,000$

Year $3$ cash flow

$57,000$

Year $4$ cash flow

$38,000$

Year $5$ cash flow

$27,000$