Please help me answer all the questions. Thank you!

Capital Budgeting Decisions (Scenario 2) 1) Life Period of the Equipment = 4 years 8) Sales for first year (1) 200,000 2) New equipment cost $ (200,000) 9) Sales increase per year 5% 3) Equipment ship & install cost (35,000) 10) Operating cost (60% of Sales) (120,000) 4) Related start up cost (5,000) (as a percent of sales in Year 1) 8 5) Inventory increase 25,000 11) Depreciation (Full depreciation) $ (240,000) 5 6) Accounts Payable increase 5,000 12) Marginal Corporate Tax Rate (T) 21% 10 7) Equip, salvage value before tax 15,000 13) Cost of Capital (Discount Rate) 10% 12 13 Year 15 Operations: 1/S 18 Revenue $ 200,000 + 17 Operating Cost $ (120,000) 13 Depreciation 5 (240 000) EBIT $ (160,000) 20 Taxes 5 (33.600) 21 Net Income 5 (126.400 22 23 Add back Depreciation $ 240,000 24 Total Operating Cash Flow $ 113.600 S S 5 27 ESTIMATING Initial Outlay (Cash Flow, CFo, To ()A H Total Operating Cash Flow $ 113.600 S ESTIMATING Initial Outlay (Cash Flow, CFo. To () CFO CF1 CF2 CF3 CF4 Year 1 2 4 Investments; 1) Equipment cost $ (200.000) 2) Shipping and Install cost $ (35,000) 3) Start up expenses $ (5,000) Total Basis Cost (1+2+3) $ (240.000) 4) Net Working Capital Increase in CA - Increase in CL $_(20.000) Total Initial Outlay $ (260 000) + Terminal: 1) Change in net WC S 5 5 20.000 2) Salvage value (after tax) Salvage Value Before Tax (1-T) XXXXX Total Project Net Cash Flows $ (260,000) $ 113.600 $ $ NPV - IRR - Payback- Of1 Impact of 2017 Tax Cut Act on Net Income, Cash Flows andTerminal: 1) Change in net WC S 5 $ 20.000 2) Salvage value (after tax) Salvage Value Before Tax (1-1) 0900 Total Project Net Cash Flows $ (260,000) $ 113.600 $ NPV - IRR - Payback= Impact of 2017 Tax Cut Act on Net Income, Cash Flows and Capital Budgeting (Investment ) Decisions (a) Estimate NPV, IRR and Payback Period of the project if equipment is fully depreciated in the first year and tax rate equals to 21% [b) Would you accept the project based on NPV and IRR? + (c ) Would you accept the project based on Payback rule if the project cut-off is 3 years? 0#2 As a CFO of the firm, which of the Scenarios (1) or (2) would you choose? Why