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Here are 2 question: these questions are relate to Net profit value Question25 25. NPV. Consider these data on a proposed project (L01) Original investment

Here are 2 question: these questions are relate to Net profit value

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Question25 25. NPV. Consider these data on a proposed project (L01) Original investment = $200 Straight-line depreciation of $50 a year for 4 years Project life = 4 years Year: 0 l 2 3 4 Sales 100 l 10 120 130 Costs 30 35 40 45 Depreciation Net income 8.. Fill in the blanks in the table. b. Find project NPV if the discormt rate is 20 percent. Question26 26. NPV. A project requires an initial investment of $10,000, and over its 5year life it will generate annual cash revenues of $5,000 and cash expenses of $2,000. The firm will use straight-line depreciation, but it does not pay taxes. (L01) I"a. Is the project worth pursuing if the opportunity cost of capital is 8 percent? b. Suppose now there is a new accounting treatment whereby halfthe initial $10,000 outlay were treated asanexpenseinsteadofacapitalinvestrnentDoes NPV change as a result of this di'erent accounting treatment? Hint: Instead of depreciating all of the $10,000, treat $5,000 as an expense in the first year

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