Question 1 1 point Number Help White Mountain Technology is evaluating a 1-year project that would involve an initial investment in equipment of 34,800 dollars and an expected cash flow of 38,400 dollars in 1 year. The project has a cost of capital of 9.22 percent and an internal rate of return of 10.34 percent. If White Mountain Technology were to use 34,800 dollars in cash from its bank account to purchase the equipment, the net present value of the project would be 359 dollars. However, White Mountain Technology has no cash in its bank account, so using money from its account is not possible. Therefore, the firm would need to borrow money to raise the 34,800 dollars. If White Mountain Technology were to borrow money to raise the 34,800 dollars, the interest rate on the loan would be 5.83 percent. White Mountain Technology would receive 34,800 dollars from the bank at the start of the project and would pay 36,829 dollars to the bank in 1 year. What is the NPV of the project if White Mountain Technology borrows 34,800 to pay for the project? Number Question 2 1 point Number Help Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 185,000 dollars today. During year 1, the project is expected to have relevant revenue of 129,000 dollars, relevant costs of 37,000 dollars, and relevant depreciation of 24,000 dollars. Gomi Waste Disposal would need to borrow 185,000 dollars today to pay for the equipment and would need to make an interest payment of 7,000 dollars to the bank in 1 year. Relevant net income for the project in year 1 is expected to be 39,073 dollars. What is the tax rate expected to be in year 1? Answer as a rate in decimal format so that 12.34% would be entered as . 1234 and 0.98% would be entered as .0098. Number Question 3 1 point Number Help Violet Sky Shipping is evaluating the laser tag center project. During year 1, the laser tag center project is expected to have relevant revenue of 893,900 dollars, relevant variable costs of 342,700 dollars, and relevant depreciation of 80,800 dollars. In addition, Violet Sky Shipping would have one source of fixed costs associated with the laser tag center project. Violet Sky Shipping just signed a deal with Blue Eagle Marketing to develop an advertising campaign for use in the project. The terms of the deal require Violet Sky Shipping to pay Blue Eagle Marketing either 106,100 dollars in 1 year if the project is pursued or 142,700 dollars in 1 year if the project is not pursued. Relevant net income for the laser tag center project in year 1 is expected to be 314,898 dollars. What is the tax rate expected to be in year 1? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as .0098. Number
