Problem 12-15 Project Cash Flows (LG12-5) Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully- depreciated vans, which you think you can sell for $5,000 a piece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $49,000 each in the configuration you want them, and can be depreciated using MACRS over a 5-year life, but you are unable to make use of either bonus depreciation or Section 179 expensing. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $5,700 each. If your cost of capital is 10 percent and your firm faces a 21 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.) Year 0 1 S FCF $ (225,250) 2 3 4 5 6 Problem 13-28 PI (LG13-6) Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively. Time: 1 0 Cash flow: -$363,000 $65,200 $83,400 $140,400 $121,400 2 3 4 5 $80,600 Use the Pl decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) PI Should it be accepted or rejected? O rejected O accepted Problem 13-3 NPV with Non-normal Cash Flows (LG13-3) Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: -$2,250 $650 $2,230 -$670 $600 -$250 NPV Should the project be accepted or rejected? O rejected O accepted