QUESTION 12 Based on the information in Part II of the Intel project, what is the IRR of the project? A. 6.5% B.6.6% C. 7.03% D.-2.71% QUESTION 13 Based on this IRR Intel SHOULD move forward with this project. True False Part Il Capital. Budeting Use this information to answer questions 9 - IN Intel is contemplating a new project where they will bring their computer chip matufacturing business back to the United States. They are estimating that they will invest $415.000 initially then will have positive cash flows over the next four years of Year 1: $45,000 Year 2: $125,000 Year 3: $160,000 Year 4: $175.000 Regardless of your answer in the previous question use a WACC of 7.2%. (This is NOT the answer you should have gotten in part 1.) Part II Cash Flow Estimation Use this information to answer questions 18 - 25 BearKat Enterprises is considering a project where they will make high end designer face masks. They can buy the equipment they need to make the face masks for $250,000 plus another $20,000 for training and installation. They will have to increase inventory by $17,000 and accounts payable will increase $3,000. They think they can sell 23,000 masks a year at a price of $6.50 each for 4 years. The estimate variable costs at 52% of revenue. They follow a four years MACRS schedule for depreciation with the following depreciation rates: Year 1: 33% Year 2: 45% Year 3: 15% 2