TrvlSafe, a manufacturer of air-freightable pet crates with imbedded chips to monitor the health of the pet, has identified two projects that have relatively high risk; however they are expected to move the company into new revenue markets. Utilize a spreadsheet to determine:

1) Which of the two projects, if either are acceptable when the MARR is equal to the after-tax WACC

2) If the same projects are acceptable, provided the risk factors are significant and warrant an additional return of 2% per year above the established MARR

project W : initial investment: -250,000

After-tax Cash flow per year: 48,000

life : 10 years

project R: inital investment: - 125,000

After-tax Cash flow per year: 30,000

life : 5 years