Please Help answer question 1 and 2

1.

a. If the appropriate discount rate for the deli expansion is 9.7%, what is the NPV of the deli expansion?

b. If the appropriate discount rate for the wine section is 8.8%, what is the NPV of the wine section?

c. What is the adjusted NPV equivalent annual annuity of the deli expansion?

d. What is the adjusted NPV equivalent annual annuity of the wine section?

2.

NPV unequal lives. Singing Fish Fine Foods has $1,880,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $640,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $530,000 for the next six years. If the appropriate discount rate for the deli expansion is 9.7% and the appropriate discount rate for the wine section is 8.8%, use the NPV to determine which project Singing Fish should choose for the store. Adjust the NPV for unequal lives with the equivalent annual annuity. Does the decision change? Net present value. Quark Industries has a project with the following projected cash flows: a. Using a discount rate of 10% for this project and the NPV model, determine whether the company should accept or reject this project. b. Should the company accept or reject it using a discount rate of 15%? c. Should the company accept or reject it using a discount rate of 21%? a. Using a discount rate of 10%, this project should be (Select from the drop-down menu.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Initial cost: $240,000 Cash flow year one: $21,000 Cash flow year two: $77,000 Cash flow year three: $141,000 Cash flow year four: $141,000 Print Done