The Boring Corporation is considering a 3-year project with an initial cost of $780,000. The project will not directly produce any sales but will reduce operating costs by $425,000 a year. The equipment is depreciated straight-line to a zero book value over the life of the project. At the end of the project the equipment will be sold for an estimated $84,000. The tax rate is 34 percent. The project will require $20,000 in extra inventory for spare parts and accessories. Should this project be implemented if The Boring Corporation requires a rate of return of 8 percent? Why or why not? Multiple Choice yes; The NPV is $210,577.78 yes; The NPV is $285,220.57 yes; The NPV is $117,213.59 yes; The NPV is $97,240.00 no; The NPV is $230,577.78 An office building is expected to create operating cash flows of $32,000 a year for three years, based on tenants' rental income. The purchase of the fixed assets for this building will cost $66,000. These assets will have no value at the end of the project. An additional $3,500 of net working capital will be required throughout the life of the project. Calculate the net present value of this project if the required rate of return is 14 percent? Multiple Choice $10,654.63 $7,154.63 $4,792.22 $2,178.57 $3,654.63