Please answer question 7 and 8.

Question 7 (10 points) A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Project D described below is 10 percent. Assuming that the projects are independent, which project(s) should the company accept? Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200. Project B has an internal rate of return of 9.5 percent. Project C requires an up-front expenditure of $1,000,000 and has a profitability index of 0.85 Project D requires an up-front expenditure of $200,000 and generates a net present value of negative $200 None of the projects above should be accepted. Question 8 (10 points) The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. What is the NPV for this investment? $135,984 $18,023 $219,045 $51,138 $92,146