DQuestion 10o A project has an upfront cost (t-0) of $10,.000, and It produces annual FCF of $3,000/ year from t-1 through t-7 (seven years). As you can calculate, the net present value of this project, as a stand alone project, without considering inflation, and using a discount rate of 9.0 percent, is $5.098.86. The firm intends to replicate thls project out to Infinlty every seven years, and expects annual inflation to be 4.0 percent for the cash outflows, and 3.0 percent for the cash Inflows. That is, the expected cost in Year 7 of replicating this project will be ($10,000* (1.04) $13,159.32, and the expected cash inflow in Year 1 will be ($3,000) (1.03)1-$3,090, in Year 2 will be ($3.000) (1.032- $3,182.70, etc. Given this information, and assuming the discount rate remains the same.dletermine the net present value of this project if it is infinitely replicated and inflation is taken into consideration. Question 11 5 pts Your company machine at Year O. The Operating expenses, other than depreclation, are expected year. The new machine will be depreclated stralght-line over 5 years to a zero book value, and the expected salvage value at Year 5 Is zero. The project will require no Increase in net working capital Is consldering taking on a new project that will require spending $200,000 on a new project will Increase revenues by $150,000 annually for Years 1-5. to be 50 percent of revenues in each during the life of the project. The tax rate on ordinary income is 40 percent. As you can calculate. at the firm's cost of capltal of 11 percent, the NPV is positive. By how much can the cost of the new machine at Year 0 go up before the project has an NPV - $0.00? $36,133 $31,238 $44,835 $25,450 $50,613 Assuming Infinite replication and a cost of of this project using the Equivalent Annual Annulty approach. capltal of 10.5 percent, determine the net present value Year Cash Flow o ($5,000.00) 1 $2,000.00 2 $1,600.00 3 $1,400.00 4 $1,200.00 5 $1,000.00 O $1,450 O $1,066 $1,250 $896 $740