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consider the following two mutually QUESTION 1 Light Sweet Petroleum, Inc. is trying to evaluate a generation project with the following cash flows Year Cash

consider the following two mutually
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QUESTION 1 Light Sweet Petroleum, Inc. is trying to evaluate a generation project with the following cash flows Year Cash Flow 0 -$30,000,000 1 63,600,000 2 -12,800,000 What is the NPV for the project of the company requires a return of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places... 32.16 QUESTION 2 Masters Machine Shop is considering a four-year project to improve its production efficiency Buying a new machine press for $425,000 is estimated to result in $169.000 in annual prete cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $69.000. The press also requires an initial investment in spare parts inventory of $28,000, along with an additional $3,500 in Inventory for each succeeding year of the project. The shop's tax rate is 23 percent and its discount rate is 10 percent Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Property Class Year Three-Year Five-Year Seven-Year 33.33% 20.00% 14.29% 44.45 32.00 24.49 14.81 19.20 17.49 7.41 11.52 12.49 11.52 5.76 8.92 8.93 4.46

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