Problem 9.4 PT Jay's Food want to invest in the expansion of a restaurant in Karawaci. They will need 4 years to finish this project that required initial asset of fixed asset of $5 Million and will be depreciated straight line to zero in the end of the project. The project will give the restaurant fo expected sales $ 7,000,000 with costs of $3,850,000 annually. If the tax rate is 35% and required retum is 15%. Would you accept the project? Problem 9.5 Monster Inc would like to open a new store using machine that would cost $1,200,000 and will be depreciated straight line to zero over its 5 years useful life. The project will be done in 3 years and the machine still worth $700,000. The system will save the firm $500,000 per year in pretax operating cost and it will need initial working capital $350,000 that will be covered at the end of the project. If the tax rate is 25% and the discount rate 15%. Should we accept or reject the project