26,27,28,29,30

26. The following table owing table gives the available protects (in millions) for A B C D E E g 50 20 0 0 0 20 Initial income 100 70 65 10 30 32 10 NPV company can obtenumit of 170 million to invest what is the maximum NPV the If the firm has a limit of 170 million a. $210 b. $275 C. $307 d. $317 e. $347 Please Show Your Calculation Steps Below 27. Exxon Mobile owns an oil lease on atract of land. Actual extraction of oil ay be done fairly quickly. If Exxon Mobile extracts immediately, you will earn $200 million. However, oil prices are expected to rise 15% per year for four Years, 12% per year for the following 2 years, 8% per year for the following 3 years and 5% per year thereafter for the foreseeable future. The opportunity cost of capital for this project is 7.5%. When should you extract the oil? a. Extract in year 3. b. Extract in year 7. c. Extract in year 9. d. Never extract it. Please Show Your Calculation Steps Below Please use the following information for the next 3 questions. RainMan Inc. is in the business of producing rain upon request. They must decide between two investment projects: a new airplane for seeding rain clouds or a new weather control machine. The discount rate for the new airplane is 5%, while the discount rate for the weather machine is 30% (it happens to have higher over time.) market risk). (Assume a 0% inflation rate and that projected costs do not change Weather Machine 700 and equivalent annual cash flows if the company chooses w wat are the NPV and quia the investment of a new weather control machine? .. NPV = $215.64; Equivalent Cash Flow - $99.55 NPV - $215.64; Equivalent Cash Flow - $53.91 C. NPV = $169.08, Equivalent Cash Flow $42.27 d. NPV = $169.08; Equivalent Cash Flow $78.05 Please Show Your Calculation Steps Below 29. What are the NPV and equivalent annual cash flows if the company chooses the investment of a new airplane? a. NPV = $191.48; Equivalent Cash Flow = $70.31 b. NPV = $191.48; Equivalent Cash Flow = $63.83 C. NPV = $105.24; Equivalent Cash Flow - $38.65 d. NPV = $105.24; Equivalent Cash Flow - $35.08 Please Show Your Calculation Steps Below 30. Which investment should the company select and why? a. Airplane because it has a higher NPV. b. Weather machine because it has a higher NPV. C. Airplane because it has a higher equivalent annual cash flow. d. Weather machine because it has a higher equivalent annual cash flow