The Net present value and then the new present value for the change in cost of capital.

Question 2: Evaluating investment projects You are planning to invest $30,000 in research & development (R80). This investment will generate cost savings of $18,000 in year 1, $12,000 in year 2, and $9,000 in year 3. After 3 years, the salvage value is zero. The cost of capital is 25% a year. a) Compute the net present value. NPV=$ Should you invest? ~YES ONO 'l b) Followlng a government stlmulus program, the cost of capital decreased to 10% a year. Compute the net present value at the new cost of capltal. NPV = $ "7 , Should you invest now? YES \"NO