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Need help with 2 questions XYZ is considering a project that would last for 3 years and have a cost of capital of 19.80 percent.

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Need help with 2 questions

XYZ is considering a project that would last for 3 years and have a cost of capital of 19.80 percent. The relevant level of net working capital for the project is expected to be $1,811.70 immediately (at year 0); $4,750.00 in 1 year; $13,400.00 in 2 years, and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 47.90 percent. What is the net present value of this project?. Year 0 Year 1 Year 2 Year 3 Revenue $ 0.00 $11,800.00 $12,600.00 $11,900.00 Costs $ 0.00 $3,930.00 $3,870.00 $3,400.00 Depreciation $ 0.00 $2,120.00 $2,190.00 $2,800.00 Cash flows from capital spending $-7,940.00 $1,970.00 $1,180.00 $4,450.00 O $11138.57 (plus or minus $10) O $9028.11 (plus or minus $10) $1218.82 (plus or minus $10) O $6142.85 (plus or minus $ 10) O None of the above is within $10 of the correct answer QUESTION 4 XYZ is evaluating the Reno project. The project would require an initial investment of $130,000 that would be depreciated to $15,500 over 6 years using straight-line depreciation. The project is expected to have operating cash flows of $49,600 per year forever. XYZ expects the project to have an after-tax terminal value of $387,000 in 3 years. The tax rate is 30%. What is (X+Y)/Z if X is the project's relevant expected cash flow in year 3, Y is the project's relevant expected cash flow in year 6, and Z is the project's relevant expected cash flow in year 2? O A number less than 8.30 or a rate greater than 13.36 O A number equal to or greater than 10.08 but less than 11.55 O A number equal to or greater than 11.55 but less than 12.28 O A number equal to or greater than 8.30 but less than 10.08 O A number equal to or greater than 12.28 but less than 13.36

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