#27 Orange Valley Technology is considering a project that would last for 2 years. The project would involve an initial investment of 98,000 dollars for new equipment that would be sold for an expected price of 93,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 26,000 dollars over 6 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 71,000 dollars per year and relevant annual costs for the project are expected to be 34,000 dollars per year. The tax rate is 50 percent and the cost of capital for the project is 9.89 percent. What is the net present value of the project?

#28 Litchfield Design is evaluating a 3-year project that would involve buying a new piece of equipment for 390,000 dollars today. The equipment would be depreciated straight-line to 10,000 dollars over 2 years. In 3 years, the equipment would be sold for an after-tax cash flow of 18,000 dollars. In each of the 3 years of the project, relevant revenues are expected to be 276,000 dollars and relevant costs are expected to be 83,000 dollars. The tax rate is 50 percent and the cost of capital for the project is 5.08 percent. What is the NPV of the project?

#29 What is the NPV of project A? The project would require an initial investment in equipment of 77,000 dollars and would last for either 3 years or 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of 25,410 dollars per year are expected each year until the project ends in either 3 years or 4 years. In 1 year, the project is expected to have an after-tax terminal value of 48,393 dollars. The cost of capital for this project is 8.49 percent.

Please help.