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Problem 6-12 Project NPV Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $37000. The object is to save on horse transporter rentals Marsha had been renting a transporter every other week for $202 per day plus $110 per mi. Most of the trips are 80 - 100 miles in total. Marsha usually g ves Joe Laminitis, the driver, a $50 to with the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.47 por mile. Insurance costs for Marsha's transporter are $1,300 per year. The transporter will probably be worth $17,000 in real terms) after eight years, when Marsha's horse Spike will be ready to retire. Assume a nominal discount rate of 8% and a 2% forecasted inflation rate. Marsha's transporter is a personal outlay, not a business or financial investment, taxes can be ignored. Calculate the NPV of the investment (Do not round Intermediate calculations. Round your answer to the nearest whole dollar amount.) NDY 5.500 Problem 6-15 Project NPV and IRR A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,700 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 21% and can claim 100% bonus depreciation on the investment. Suppose the opportunity cost of capital is 9%. Ignore inflation. a. Calculate project NPV for each company. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) * Answer is complete but not entirely correct. NPV Company $ 3.854 Company $ 1,310 b. What is the IRR of the after-tax cash flows for each company? (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal places.) Company Company Answer is complete but not entirely correct. IRR 10.5 % 10.0 %