8. Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $11,100 at t= 0. Project X has an expected life of 2 years with after-tax cash inflows of $6,300 and $7,200 at the end of Years 1 and 2, respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Y has an expected life of 4 years with after-tax cash inflows of $4,000 at the end of each of the next 4 years. Each project has a WACC of 8%. Using the replacement chain approach, what is the NPV of the most profitable project? Do not round the intermediate calculations and round the final answer to the nearest whole number. a. 1,783 b. 2,170 c. 1,697 d. 2,149 e. 1,977 10. Zervos Inc. had the following data for last year (in millions). The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4,000. (2) that improvements in the credit department could reduce receivables by $2,000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2.000. Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold. If these changes were made by how many days would the cash conversion cycle be lowered? Annual sales: unchanged Cost of goods sold: unchanged Average inventory: lowered by $4,000 Average receivables: lowered by $2,000 Average payables: increased by $2,000 Days in year Original $124.000 $80,000 $20,000 $16,000 $10,000 365 Revised $124.000 $80,000 $16,000 $14,000 $12.000 365 a. 34.6 days b. 39.2 days c. 37.2 days d. 33.3 days e. 36.9 days