Consider a factory that must have an air cleaner. The equipment is mandated by law, so there is no "doing without". A "good cleaner" costs exist2,000 today, has annual operating costs of exist300, and lasts for 3 years. Computer the EAC of the cleaner, assuming an 8% discount rate and zero taxes. A) exist967 B) exist1076 C) exist924 D) exist1205 To compute the incremental cash flow s of a project one should A) consider opportunity costs. B) ignore sunk costs. C) consider the three sources of cash flows. D) all of the above. Frim XYZ is considering the purchase of a exist3,000 souffle maker, which has a life of 3 years and will be fully depreciated to a zero book value by the straight-line method. The machine will produce 2,000 souffles per year, with each costing exist4 to make and priced at exist5. In order for the machine to work, an increase in net working capital of exist1,000 is required at the beginning and it will be fully recovered at the end of Year 3. Assume that the discount rate is 10%, the firm is profitable, and the tax rate is 40%. Find the NPV and IRR for the project. The cash flow in the first year in the life of the project is A) exist1000 B) exist1650 C) exist2000 D) exist1600 The NPV of the project is A) exist2046.59 B) exist2132.47 C) exist1668.22 D) exist978.57