1. Several companies, including Barnyard and Energy Solutions Corporation, are considering project A, which is believed by all to have a level of risk that is equal to that of the average-risk project at Barnyard.  Project A is a project that would require an initial investment of $76,400 and then produce an expected cash flow of $105,100 in 4 years.  Project A has an internal rate of return of 7.78 percent.  The weighted-average cost of capital for Barnyard is 10.13 percent and the weighted-average cost of capital for Energy Solutions Corporation is 5.49 percent.  What is the NPV that Energy Solutions Corporation would compute for project A?

   2. XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $50,0000. It would be depreciated straight-line to $0 over 2 years. In 2 years, the system would be sold for an after-tax cash flow of $14,000. Without the system, costs are expected to be $100,000 in 1 year and $100,000 in 2 years. With the system, costs are expected to be $75,300 in 1 year and $68,600 in 2 years. If the tax rate is 46.90% and the cost of capital is 8.70%, what is the net present value of the new interception system project