ch 9.3Garic Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $190,000. The respective future cash inflows from its four-year project for years 1 through 4 are:$50,000, $40,000, $70,000 and $45,000. Garic uses the net present value method and has a discount rate of12%. Will Garicaccept the project?

2.

Cotner Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $110,000. The future cash inflows from its project are$30,000, $25,000, $50,000 and $40,000for years 1, 2, 3 and 4, respectively. Cotneruses the net present value method and has a discount rate of10%. WillCotner accept the project?

3.

Travisagreed to a $100,000 fixed-rate loan from VystarCredit Uniontoday and promised to repay the loan with 36 equal monthly payments at an APR of 6.50%. What is the EAR of his loan?