Part I: Capital Budgeting Use this information to answer questions 9-18 Intel is contemplating a new project where they will bring their computer chip manufacturing business back to the United States. They are estimating that they will invest $500,148 initially then will have positive cash flows over the next four years of Year 1: $95.000 Year 2: $125,000 Year 3: $145,800 Year 4: $235.000 Regardless of your answer in the previous question use a WACC of 6.77%. (This is NOT the answer you should have gotten in part 1.) Part II Cash Flow Estimation Use this information to answer questions 18-25 Bearkat Enterprises is considering a project where they will make high end designer face masks. They can buy the equipment they need to make the face masks for $250,000 plus another $10,000 for training and installation. They will have to increase inventory by $5,000 and accounts payable will increase $1200. They think they can sell 50,000 masks a year at a price of $8.50 each for 4 years. The estimate variable costs at 80% of revenue. They follow a four years MACRS schedule for depreciation with the following depreciation rates: Year 1:33% Year 2: 45% Year 3: 15% Year 4: 7% QUESTION 9 Based on the information in Part II of the Intel project, what is the NPV of the project? OA -$903.77 B. $ $ 1,498.01 O C. $2,030.54 D $4,438.73 QUESTION 10 Based on the NPV, Intel SHOULD NOT go forward with this project. True False QUESTION 11 We can use the IRR method to evaluate this project because it has normal cash flows. o True False