Twoquest Inc. is considering a new investment that is similar in risk to the company's main business. The following table sets out information regarding the firm and the potential project: The project has an expected life of five years. There would be no salvage value at that time. Annual revenues and expenses would occur at the end of each year for the next five years. What is the net present value of the project? a) $(5,082) b) $101,988 c) $658,197 d) $994,918 A company is considering investing in a machine costing $3,250,000 (net of tax shield). The machine would generate annual net after-tax cash inflows of the following amounts: These cash flows would occur at the end of the year. The discount rate appropriate for this project is 9% and the company has an income tax rate of 15%. What is the discounted payback period for this project? a) 3.06 years b) 3.38 years c) 3.94 years d) 4.97 years Zanipul Inc. (Zanipul) is considering a major expenditure of $225,000 to improve its manufacturing technology, which will result in annual operating cost savings of $85,000 for the next three years. The initial outlay can be expensed immediately for tax purposes. Zanipul's income tax rate is 25%. What is the internal rate of return (IRR) of this investment? a) 6.53% b) 7.71% c) 14.3% d) 23.87%