Q1 NPV for varying costs of capital Le Pew Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $360,000 and will generate cash inflows of $62,650 per year for eight years. For each of the costs of capital listed, (1) calculate the net present value (NPV), (2) indicate whether to accept or reject the machine, and (3) explain your decision. The cost of capital is 6%. The cost of capital is 8%. The cost of capital is 10%. Q2 How is a net present value profile used to compare projects? What causes conflicts in the ranking of projects via net present value and internal rate of return? Q3 In theory and in practice, which method is better, NPV or IRR