Question 7 Coffee Slurp is considering including a new expresso machine in this year's capital budget. The cash outlay for the machine is $2,130. The firm's cost of capital is 7.1%. After-tax cash flows, including depreciation, are as shown in the table below. Calculate the net present value (NPV) for this project. End of Year Cash Flow ($) 1 710 2 710 3 710 4 710 5 710 $810.79 $795.45 $802.58 $773.36 Question 8 A project has an initial investment of $200,000 and will generate 5 annual cash flows of $60,000. Assume a cost of capital of 15%. Calculate the profitability index (PI). 0.98 0.89 1.25 1.01 Question 9 Borg Robotics Inc. is considering the following projects. Project Investment (in millions) NPV (in millions) Profitability Index (PI) $14 $5.6 1.4 B $17 $3.4 1.2 C $19 $9.5 1.5 $16 $12.8 1.8 Suppose that Borg only has $61 million to invest in new projects. Which projects should it select to maximize the company's value? A, B, and D A, B, and C O B, C, and D A, C, and D