Given the following information: Initial investment in fixed assets = $20,000; initial investment in net working capital = $5,000;life = 4 years; cost savings = $10,000 per year; salvage value = $4,000;Straight-line depreciation to zero; tax rate = 21%; discount rate = 15%. What is the NPV of this project? A) $7215 B) $1,444 C) $5218 D) $4,111 E) $6,501

Given the following information: Initial investment in fixed assets =$20,000; initial investment in net working capital =$5,000; life =4 years; cost savings = $10,000 per year; salvage value =$4,000; Straight-line depreciation to zero; tax rate =21%; discount rate =15%. What is the NPV of this project? A) $7215 B) $1,444 C) $5218 D) $4,111 E) $6,501 M Corp, is trying to determine its cost of debt. The firm has a debt issue outstanding with 25 years to maturity that is quoted at 103 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. If the tax rate is 21 percent, what is the after-tax cost of debt? A 6.96% B) 5.76% 4.56% 18% E) 3.86% A B c Di: EC)