I calculated npv, but whats the next step?

12 4Megan, CFO for Ryan's Equipment recently purchased a tractor. The new tractor costs $75,000, and expected to generate net after-tax operating cash flows, including depreciation, of $25,000 per year the 4 years that the firm is thinking about keeping it. The expected year-end abandonment values (ale plus tax effect) for the tractor are given below. The company's cost of capital is 10 percent. What is th optimal economic life? (75,000) 25,000 25,000 25.000 25,000 60,000 40,000 25,000 5,000 a. The EAA method confirms that the economic life is 1 year. b. The EAA method confirms that the economic life is 2 years. c. The EAA method confirms that the economic life is 3 years d. The EAA method confirms that the economic life is 4 years. e. None of the above. 1250o D Kunzman Corporation has sales revenue of $45,000,000. The company's fixed costs total $15,000,000, its variable costs are 8 percent of sales revenue, its interest expense is $3,000,000. If the company wants to increase its sales by 1 7%, how much will that increase Net Income? a. 19.04 percent b. 30.08 percent c. 19.41 percent d. 31.47 percent e. 26.09 percent