pts) Jumpstart, Inc. recently hired you as a consultant to help with its capital budgeting process. e company is considering a new project whose data are shown below. The equipment that would be o would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and Risk-adjusted WACC Net investment cost (depreciable basis) Straight-line deprec. rate Sales revenues, each year Operating costs (exel. deprec.), each year Tax rate 12.0% $85,000 33.33% $95,500 $35,000 40.0% WACC 12.090 Years 20) (15 pts) Projects S and L, whose cash flows are shown below, are mutually exclusive, equally risky, and not repeatable. Hooper Inc. is considering which of these two projects to undertake. Calculate the NPV and IRR for each project and explain which project should be undertaken based on your calculations. 10.25% WACC Year CFs CFL 0 -$2,050 $4,300 $750 $1,500 $760 $1,518 $770 $1,536 4 $780 $1,554