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Please help me with both!! Thank you. Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,500 at t =

image text in transcribedimage text in transcribedPlease help me with both!! Thank you.

Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,500 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $5,800 and $6,800 at the end of Years 1 and 2, respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Y has an expected life of 4 years with after-tax cash inflows of $3,300 at the end of each of the next 4 years. Each project has a WACC of 8%. Using the replacement chain approach, what is the NPV of the most profitable project? Do not round the intermediate calculations and round the final answer to the nearest whole number. O a. $430 O b. $1,301 O c. $2,078 O d. $1,730 O e. $1,208 Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. At the end of the project's life, the equipment would have zero salvage value. No change in net operating working capital (NOWC) would be required for the project. Revenues and operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) Do not round the intermediate calculations and round the final answer to the nearest whole number. WACC 10.0% Opportunity cost after taxes $100,000 $65,000 Equipment cost Annual sales revenues $120,000 Annual operating costs $25,000 Tax rate 25.0% O a. $41,961 O b. $28,438 O c. $12,188 O d. $41,909 O e. $25,659

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