- Question 26 1 point Number Help Blue Eagle Health is considering a project that would last for 2 years and have a cost of capital of 9.51 percent. The relevant level of net working capital for the project is expected to be 22,000 dollars immediately (at year 0); 6,000 dollars in 1 year; and O dollars in 2 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, and 2 are presented in the following table (in dollars). The tax rate is 50 percent. What is the net present value of this project? Year o Year 1 Year 2 Revenue 215,000 215,000 Costs $0 61,000 61,000 37,000 37,000 Depreciation Cash flows from capital spending $0 -76,000 24,000 Number Question 25 1 point Number Help Violet Sky Food is evaluating the laser tag center project, a 2-year project that would involve buying equipment for 84,000 dollars that would be depreciated to zero over 2 years using straight-line depreciation. Cash flows from capital spending would be $0 in year 1 and 22,000 dollars in year 2. Relevant annual revenues are expected to be 122,000 dollars in year 1 and 122,000 dollars in year 2. Relevant expected annual variable costs from the project are expected to be 14,000 dollars in year 1 and 14,000 dollars in year 2. Finally, the firm has no fixed costs in year 1 and one fixed cost in year 2 of the project. Yesterday, Violet Sky Food signed a deal with Orange Valley Marketing to develop an advertising campaign. The terms of the deal require Violet Sky Food to pay Orange Valley Marketing either 77,000 dollars in 2 years from today if the laser tag center project is pursued or 55,000 dollars in 2 years from today if the laser tag center project is not pursued. The tax rate is 30 percent and the cost of capital for the laser tag center project is 11.73 percent. What is the net present value of the laser tag center project? Number