2. Solarte Inc. is offered project that costs $200 today and pays $16 at end of each year forever. What is the annual IRR? Should you accept if company has IRR requirement of 7%? 3. Clyde Media has an investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The discount rate is 14 percent. The firm's payback period is two years. For a project that cost $5,000, would you take the project? 4. You can buy a printing press for $80,000 today. You will have to pay labor costs plus the variable cost of $44,000 per year at the end of each year for the next 6 years. You expected to have net sales (revenues) of $120,000 per year. At the beginning of each year, you must have Net Working Capital equal to 20% of end-of-year net sales. At the end of year 6, you will recover the Net Working Capital (in other words, end of year 6 NWC = 0). The printing press will depreciate (straight-line) to zero over the life of 10 years. You think you can sell the printing press for $40,000(sale price) at the end of year 6. Tax rate is 35%. a. What is the after-tax salvage value(after-tax cash flow from sale of the asset) at the end of year 6 when you sell the printing press? b. What are the Free Cash Flow for years 0-6? c. What is the net present value of this project if the cost of capital of the project is 12% per year? Should you accept or reject the project?